Bloodbath on D-Street, rupee butchered; what next?

Moneycontrol :Aug 27, 2013, 12.32 PM IST Barring health and IT sector indices, all others are trading below their 200 DMA. Bank Nifty took the biggest hit with private banking space getting smashed out of shape. While the 30-share benchmark cracked nearly 500 points, the beleaguered Indian rupee visited yet another life-low of 65.87 per dollar. Rupee has fallen nearly 4 percent in the last three sessions. Barring health and IT sector indices, all others are trading below their 200 DMA. Bank Nifty took the biggest hit with private banking space getting smashed out of shape. HDFC twins cracked over 6 and 7 percent, respectively. Axis Bank has fallen 4.8 percent and ICICI Bank is trading down close to 3 percent. The advance decline ratio on the NSE stands at 1:4. Reacting to the bloodbath, Dilip Bhat of Prabhudhar Lilladher says the fear of losing out is very real and is being aggravated by withdrawal of FIIs. The way HDFC Bank and ICICI Bank have come off shows FIIs are selling in this market. According to him, market in September and October will remain exteremly volatile. "5000 on the Nifty is within the striking distance and can happen in September." The sharp fall belies the Finance Minister's belief that the Indian market is reacting to an emerging market phenomenon. Siddharth Bhamre of Ange Broking saif FIIs are aggressively shorting the index and there is more in the offiing. This news has just come in and complete details will follow shortly.  We can send you an email alert when the details come. Register for your alert here.