oppn parties Blood Bath In The Stock Markets

News Snippets

  • Karnataka HC has ruled that a harassment complaint lodged by a wife after receiving a divorce notice from the husband loses its weight in the eye of the law and quashed the FIR filed by a women against her husband and in-laws
  • 35 people killed in renewed violence in Manipur, 30 of them militants
  • Manipur boils on the eve of Home minister Amit Shah's visit as militants strike, vandalize MLAs home and loot armouries
  • Kerala chief minister P Vijayan says Centre's decision to cut the borrowing limit of the state is 'sadistic' and shows its negative mentality towards the state's development
  • Rahul Gandhi recieves passport, set to travel to the US
  • Centre said that the march-to-Parliament by wrestlers was a 'deliberate provocation'
  • Prime Minister Modi inaugurates the new Parliament building, calls it 'cradle of empowerment'
  • Mamata Banerjee will most likely attend the opposition meet called by Nitish Kumar in Patna
  • With container prices, which were on fire, crashing by 40% YoY, importers and exporters in India heaved a sigh of relief as the burden of high freight costs will reduce
  • In an aim to push lenders to manage risks better after the US financial crisis, the RBI has reviewed bond value norms
  • 14 countries under the Indo-Pacific Economic Framework (IPEF), including India, entered into an agreement to boost supply chains and counter China
  • Malaysia Cup badminton- H S Prannoy wins the title beating Weng Hong Yang of China 21-19,13-21, 21-18
  • Yashasvi Jaiswal replaces Ruturaj gaikwad as stand-by opener for the WTC final
  • IPL final washed out due to rain, rescheduled for today, the reserve day
  • In a shameful incident, Delhi Police manhandled international wrestlers when they sought to march peacefully to the new Parliament building to highlight their greivances, detained some top wrestlers
Fifth IPL title for Chennai as Ravindra Jadeja hits 10 off last two balls to spoil the party for Gujarat Titans
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