Welcome back bears!

Doug Kass says often that the market has no memory from day to day. In the last trading session, Indian market posted a record single day but today morning, it seems that the bears will be ruling the D-street as God knows who laid the red carpet for the bears this morning! Rating agency-ICRA has sharply cut the country’s GDP forecast amid Coronavirus crisis and expects the economy to grow at just two per cent in the current fiscal and further, there are murmurs going on the street that the centre is considering states’ request to extend the lockdown beyond April 15 to combat the spread of Coronavirus. SGX Nifty is down by 146 points and is trading at 8,716 levels.   

Asian markets traded on a mixed note on Wednesday, following a rocky session that the major indices gave up gains on Wall Street overnight. Japan’s Nikkei 225 was up by 0.47 per cent, Hong Kong’s Hang Seng slipped 0.74 per cent and China’s Shanghai Composite was down by 0.26 per cent.

Back home, on Tuesday, it seemed that the bulls came out of quarantine by posting the biggest single day gain since May 2009. Nifty jumped 8.76 per cent and BSE Sensex climbed 8.97 per cent. BSE Sensex reclaimed 30,000 mark for the first time since March 17. India VIX continued to decline and hit a month low of 52.06, down by about six per cent. In the broader markets, Nifty Mid-cap and Small-cap rallied 5.28 and 3.52 per cent, respectively. All the sectoral indices ended in green with Nifty Private Bank, Nifty Pharma and Nifty Bank being the top gainers.

In overnight developments, US stocks took a u-turn as the buoyancy over the flattening of COVID-19 pandemic’s curve was tempered by the news of a large increase in deaths out of New York to Coronavirus. Dow at one point in a day was trading higher by 900 points but ended the day with miniscule losses of 0.1 per cent while, the tech-heavy Nasdaq fell 0.3 per cent and S&P 500 dropped 0.2 per cent. Meanwhile, European indices closed in green for the second consecutive day on Tuesday, as new cases of COVID-19 were in a declining trajectory.