The hope of some agreement on production cuts in oil dwindled . In response Oil gave up almost all the gains of the past few days . The markets which had moved up in the past buoyed by Japan central banks negative interest rates and stronger oil prices came down sharply.
In India Indian Central bank RBI spoiled the party . RBI kept interest rates constant . However many felt an aggressive interest rate cut at this point would have provided the required liquidity support before the budget . The banking shares moved up in a bit of short covering . However ny the end of the day , the market was deeply in red .
Indian economy continues to recover . The forthcoming budget will also support the market.
Thus the long term story for India remains intact .
In the immediate short term , the global sell off will affect the Indian equity market .
Traders can initiate NIFTY short positions will strict stop losses.