Market is in the full control of bears owing to the retrospective taxation effect.

Media reports that many foreign investors have been receiving notices requesting their MAT calculations for financial year 2011-2012. This has created panic in the minds of foreign investors. FM suggested that if they want relief, they should appeal rather than asking for him to step in.

The FIIs resorted to selling of  the Indian equity which drastically dragged down the Indian indices nearly 2% in a  single day.  The BSE Mid-Cap index shed 2.02%. The BSE Small-Cap index declined 2.17%. All the 12 sector indices on BSE declined. Some stocks declined by more than 20%. We expect the ripple effect to continue and the market may go down further.

Government data showed that India's merchandise exports dipped 21.06% to $23951.16 million in March 2015 over March 2014. This could help the bears to take control of the export oriented companies. We will have to check how far the Nifty can go down from the current levels. Already Nifty has been bleeding heavily and in a short period of time it is not a good sign for Nifty.

As reported much earlier the market will bottom out owing to the uncertainties of the future earnings. Let us wait and watch the drama