Exactly at this time last week, nobody would have imagined that the Nifty could dip by a staggering 509 points in a week to trade below the 7000 points mark. In fact, this week saw the biggest drop the benchmark indices like the Sensex and the Nifty have seen since July 2009. The Sensex lost a staggering 1680 points in trade.
ICICI Bank, Bank of Baroda, Punjab National Bank, Union Bank of India, Bank of India, Andhra Bank, Canara Bank and Syndicate Bank have all fallen to 52-week lows. A few favourites like Just Dial and Jubilant Foodworks have also fallen through the roof.
PSU Banks are now trading at horribly low levels and nobody knows, if there is further downside risk. Results have been bad for these set of banks and it could only get worse in the coming days.
But, it was not all about Indian equities. Japanese stocks also fell a huge 11 per cent this week, though the European markets saw some bounce on Friday.
Analysts are warning that there maybe more downside risks to this market and the best is to stay away. On Friday we saw some bump-up in equities on hopes that OPEC would cut production and boost crude oil prices. Whether they could happen, which could lead to a rally in stocks is difficult to tell.
What would be interesting to see is the opening of the Chinese markets on Monday after a full week of holidays for the Lunar New year. It's likely that they would open lower, but, a slump of 7 per cent the closing of the markets, may again bull down global markets.