Expert view on market move and panic selling

New Delhi: It’s been an onslaught of selling on Thursday. The IIP numbers are painting a gloomy picture, the oil, US dollar tumbling, its been an entire spill of bad news.

Here is Stock Editor Udayan Mukherjee’s view on the big turmoil:

We are all scratching our heads over what went wrong and what could turn the tide. But there is nothing that is coming through by way of good news.

Even today we are a combination of bad news in the market. All global financial markets were selling off today, to a certain affect it was a global contagient effect on out the market, we had a hangover of the IIP numbers and those did not board well yesterday.

I think there was a little spill over of the sentiment from yesterday of the IIP numbers one they got out in bold print this morning.

The yen has gone hundred to a dollar, which means there is complete risk aversion in the global financial system and there could be some unwinding of carry trades which is happening as well.

Depends on what the US does. The Dow doesn't suggest good future for the markets. So if we have more bad news from the markets we may go to the January lows for the Nifty that is entirely possible.

The problem is there is no buyer standing outside even with these kind of levels.

So one fears the worst even for tomorrow. But there could be some short covering rallies because the market has been fairly oversold these last couple of days.

The markets are in a kind of frame of mind and the sentiment is so poor that even these kind of induced rallies are not lasting so long. So I am not so confident that when the fed cut rates on the 18 of may we will see the end of the problems. I think we have got other problems to resolve right now.

Macro numbers are weakening. People are talking about sub eight percent gdp growth now after seeing those numbers. And what is filtering through those numbers is that earning are slowly getting revised for many large companies and if that happens the basic underpinning of the market starts to weaken.

That is the big fear going around, a macro weakening followed by micro earning revisions downwards that can bring stock prices even lower.