Mumbai: The Sensex tanked 362 points on profit booking and selling by FIIs who are facing continuing redemption demands from their clients due to global turmoil.
European banks are in trouble on fears that the oil companies will not be able to repay their loans as crude oil prices keep dropping.
However with Saudi Arabia, Qatar, Russia and Venezuela deciding to freeze oil production late on Tuesday evening, oil prices surged six per cent on the announcement. “The surge won’t last too long,” said Vijay Singhania of Trade Smart Online, adding that oil prices won’t go back to the $100 a barrel days.
Besides Iran’s stand is not known as it recently started production following the lifting of sanctions.
“Markets seem to have bottomed out and there will be huge volatility from day to day as traders cannot make money on shorting so they pull down and raise markets alternatively,” said independent analyst S.P.Tulsian. This situation could continue till March 15, by when advance taxes will have to be paid.
Mr Dipen Shah, senior vice-president Kotak Securities said: “All eyes will now be on the budget and sector specific expectations will continue to impact stocks, apart from global cues.
