oppn parties Blood Bath In The Stock Markets

News Snippets

  • Kapil Sibal leaves Congress, fills nomination for Rajya Sabha with SPs backing
  • RBI bans 5 NBFCs as it cracks down on e-lending platforms
  • Hindustan Motors to tie-up with Peugeot to bring out a redesigned version of the iconic Ambassador
  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
  • IPL: RCB beat LSG by 14 runs and end their dream run. Rajat Patidar scores a brilliant 112. RCB will take on RR to decide who goes through to the finals
  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
Yasin Malik of JKLF gets two life terms in terror funding case /////// Kashmir TV artist killed and her nephew injured in a terror attack in Hushroo in Budgam district
oppn parties
Blood Bath In The Stock Markets

By Ashwini Agarwal

Stocks are bleeding and investors have lost enormous wealth in what is now seen as carnage. The Sensex is below 39000 and the Nifty below 11500. Both the indices fell over 1 percent last week. But the real drop was in the MidCap and SmallCap indices which fell by over 3 percent. Midcaps were touted to be the next big thing not even two months back. But now they are being beaten down by wary investors.

Why is this happening? Market stalwarts say that the slowdown in the economy, the largely direction-less budget, lacklustre earnings from even large companies, global cues and the indication by the government that there will be no rethinking on the surcharge imposed on FPIs, along with the fear of a full-scale trade war between the US and China has spooked the market.

Some analysts say that the market has entered a bearish phase and the downtrend will continue as the bottom has not been seen yet. Jagannadham Thunuguntla, Sr. VP and Head of Research at Centrum Broking Limited is of the opinion that the markets are in capitulation mode as the sentiment was already delicate before the budget.

Some good stocks have fallen between 10 to 20 percent while some others that were witnessing uptrend have declined by over 30 percent. IndusInd Bank, Bajaj Auto, Gail India, Eicher Motors, Hero MotoCorp, M&M, and YES Bank dropped between 5 to 11 percent while Manpasand Beverages, DCB Bank, RBL Bank, DHFL and Religare Enterprises fell between 10 to 20 percent. There seem to be no buyers at many counters.

Analysts feel that the sentiment will not be reversed easily as the crisis is getting worse. They feel that apart from some positive global cues (like settlement of trade dispute between the US and China, for instance) it is upon the government to announce some policy initiatives or reforms to cheer up the market. They feel that the slowdown in the economy will result in more companies reporting muted earnings and this will take the market down further. Investors are advised to wait and watch before making fresh commitments.

pic courtesy: memecenter.com