My two cent analysis of Today’s flash crash (by the way I am not trading today so… having little fun watching all these moves)
- All rate sensitives crashed (Realty, Auto, Banks)
- Many stocks that will benefit from INR strength gained (INR itself, OMCs, Reliance etc)
I think this was due to few large traders/institutions having a view (Or it may not just a view…cud be an “informed-view” ) about RBI hiking rates massively in their upcoming Oct 5th meeting. Small savings rates have been already hiked
Insider info is not that difficult to get in India u see…
Just a paper sold at higher yield, nothing to do with insider info or rate hike. One hfc had a domino effect on rest of the market
“Sources” say its just for liquidity… nothing else
yes but he yield is too high as compared to 8-7.5% paper isued
RBI is behind the curve and debt market is taking note of it.
Todays’ news RBI & SEBI stand ready to step in to curtail bond market debacle.
This is going to be interesting if RBI raises rates more than 25 bps to save INR and bond market, stock market is going to tank. Wht will SEBI do to save matkets from plunging?