oppn parties Blood Bath In The Stock Markets

News Snippets

  • Rain deficit seen in India in january for the first time in 5 years
  • Heavy snowfall disrupts life in J&K, Himachal and Uttarakhand
  • Centre says Teesta Setalvad's politics is divisive and opposes her plea on conversion law
  • The ASI who shot and killed Odisha health minister Naba Kishor Das might have done so to extract revenge as the minister had rebuffed him
  • Law minister Kiren Rijiju says pleas against BBC documentary are a waste of court's precious time
  • Self-styled godman Asaram held guilty of rape and sodomy. he is already serving life term for another conviction in a rape case
  • Supreme Court to hear pleas against the ban on BBC documentary on Gujarat riots and Prime Minister Modi
  • Adani Enterprises FPO subscribed just 3% in 2 days
  • Hindenburg slams Adani response to its report, says nationalism cannot be an excuse for fraud
  • Gold hits new high in India: traded at Rs 57149 per 10 gms
  • Adani Group companies continue to bleed although Adani Enterprises reversed the trend to gain on Monday
  • Markets end positive after a highly volatile session on Monday: Sensex gains 169 points to 59500 and Nifty 44 points to 17648
  • Satellite images show significant increase in night lights in India with some states growing at 43% in 10 years and some even 400%. Economists consider this as indicator of growth
  • Bombay HC has ruled that there will be no parole for TADA victims in Maharashtra
  • Courts handed out the death sentence to 165 accused in 2022, the highest in 40 years
Investors lose Rs 5.6 lakh crore as Adani Group companies lose 29% market value in three days and the carnage is continuing
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