Sensex continue to crash following global trend

Sensex shed another 200 points this morning. This was not unexpected though; after the US market witnessed biggest intraday fall yesterday. I fact all markets, be it European or Asian, were in deep red yesterday.

US and European economies were just starting to come out of the recession and then came the greece problem. It just sent alarm and the anticipation of cash flow and lending shortage from European banks. So big foreign investors are being extra cautious and wants to preserve some cash in their hand. They are also sceptical about the stock markets, in general for the near future.

So, here in India also we are seeing some sell offs and domestic players are also being cautious. It is a cascading effect...one fall is just triggering more panic which in turn triggers more sell offs. This is to continue for a while, till the European market, currency and banks credit rates are adjusted and understood fully.

I do not believe the correction in Indian market will be as deep or as long as some of the European markets or US market. It will possibly be the quickest to come back. Sensex will not go back to the recession days, but it will correct nevertheless.

I'll probably wait till the market reaches the bottom and may cherry pick some good stocks in bank, pharma or energy sectors, when the price become attractive.

I am not planning to sell anything in this choppy market.