The mayhem is so deep as only one (Bharti Airtel) out of Nifty-Fifty stocks and two out of Junior Nifty-Fifty stocks were trading in the green.
Out of 144 stocks that were part of F&O in the derivative segment, only Bharti Airtel, Tata Communications, Petronet LNG and McLeod Russel were trading in the positive zone, that too marginally.
The 30-share BSE index was trading lower by 610.89 points or 2.23 per cent at 26,829.25 and the 50-share NSE index Nifty was trading down by 195.05 points or 2.34 per cent at 8,129.75.
All BSE sectoral indices were trading significantly in the red with capital goods, power, realty and metal indices posting huge losses.
What they say
According to analysts, today's fall is not something unexpected. Given the selling by foreign institutional investors in the cash segment and in index futures in the last few days, the fall only looked imminent, they opined.
But what aggravated today's slide were the Greece crisis and the rising crude oil prices.
Algo-related sell-off
A Reuters report quoting Nilesh Dedhia, founder of NTD Trading, which specialises in providing algo-based trading platform, said the Nifty, which has now slipped below its 200-day average, also broke Tuesday's low which generated strong sell-off on algo platforms.
So is it time to buy right now? A few experts in the market still feels time is not yet ripe for the purchase. "Technically, the market is very weak," Ramesh Chordia, an independent advisor, said and cautioned "As the famous saying goes.. don't catch the falling knife."
According to Emkay Global, despite the recent fall, the market is still exuberant. "We expect markets to be influenced by both domestic and global factors," said Emkay.
Expected Fed rate take-off from September and potential risk to emerging market flows following that, sustained strengthening of the US dollar as Fed moves towards normalisation, further weakening in rupee against the dollar and outlook on global commodities are major global factors, Emkay said.
The Government's commitment to fiscal expansion in response to political pressure will be the major factor to watch from domestic front, the broking firm added.
The “hope trade” since mid-2013, is reflected in reallocation into capital goods and out of IT, pharma and consumers; expect further scope of unwinding of the “hope trade”, Emkay Global said.