This is what happened around 2:00 pm Indian time:
Supreme Court decision: Coal Block Allocation Supreme Court: Blocks Awarded Via Screening Panel Since 1993 Illegal
Market never likes such kind of retrospective decision. It does create doubt on business environment in general. The news was big enough to cause chaos in the market. First Metals and power stocks sold off sharply.
Here's how Nifty reacted
It was a one way sell off and the magnitude of selling in Bank stocks was even bigger. Nobody knows how much banks are exposed to the sector and the implication of this decision
What happens Next?
We are in Bull market and generally in Bull market - bad news gets absorbed pretty quickly and market just moves on. Will market once again resume uptrend? We will wait and see.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers