Near limit downs for many stocks led by safaricom. NSE20 cracking the GFC low is a game changer. Some bull action is expected before we breach the 2000 mark after which it will be Armageddon.

The streets are broke,just waiting for Armageddon

Some day yesterday was! Gap ups, gap down, circuit breakers, limit downs, system glitches...action packed all round. Dow dumped 2013 points despite activation of halts on trading and is now about 200 points shy of bear territory. European markets are in bear territory already and they haven't seen the worst of the pandemic yet. MIB was 15% at some point and its futures shed another 11% as the country institutes a countrywide lock down. For oil and its corollaries it was a beat down like no other since 1991. The fear here is a contagion into the credit market which is already acting up.

I think we have seen the low in USTs where yield on the 10yr went sub 0.5% and the entire yield curve was below 1% as markets gauge the possibility of negative interest rates in the US. Recession in Japan, Australia and Europe (wonder how schengen will hold up) is now a dead certainty. Oil and commodity dependent countries will quickly follow if the Saudi-Russia tiff continues amid weakening demand. Tourism dependent countries (most of Southern Europe) may recover in Q2 if the virus is contained early. For China, US and India it is mostly a question of how deep the damage is. With all three slowing down it isn't a good outlook for the global economy in 2020 as they've been doing most of the heavy lifting in terms of growth, consumption, investment, tourism and manufacturing.

NSE20 dropped below 2360 again to close at 2335.95 yesterday which lower than the earlier Feb low. Asian and European market recoveries today will help stem the bleeding for now. FY19 results however positive might not amount to much in terms of bouying the market.