The NIFTY has moved to 4000 levels yesterday. It even touched a intraday low of 3800 before recouping most of the losses thanks of injection of liquidity by few of the Central Banks and some comforting words from the Finance Minister.
Actually what the Finanace Minister said is very simple that Indian banks are relatively insulated from the global crisis going on currently. For any market observer it was apparent that Indian banks would not be badly affected due to this but the fear psychosis hit all of us. Banks were completely sold-off. ICICI has estimated its loss to around 130 crores whereas it has made a June'08 quarter profit of 730 crores or so. SBI, PNB, BOI have all exposures to the extent of USD5 to 10 million, but considering the size it is very miniscule.
Yesterday's intra-day swing was one of the most swift movement I have seen for a long time. It opened weak around 3830 dipped further to 3800. In the afternoon, the spurt was very sudden and many of the traders would have been caught off-guard. It moved from 3830 levels to 4000 levels in a matter of 15 minutes. Reliance Industries moved up by Rs100, Bharti Airtel moved up by Rs70 resulting in swift upmove. The NIFTY has closed around 4030 levels. With the US markets and Asian markets making smart recovery yesterday, we can expect some gap-up opening in the morning today. SGX NIFTY is already trading at 4270 levels, we may even touch 4300 levels today. Happy trading!!!