oppn parties Monday Bloodbath: Bears Take Firm Control Of Stock Markets

News Snippets

  • Calcutta HC says Cricket Association of Bengal is not liable to pay tax on advertisement inisde Eden Gardens cricket ground as it is not a 'public place' because it does not have unrestricted access for the general public
  • Supreme Court admits a plea from a child of a single OBC mother who had applied for an OBC certificate for her son
  • Supreme Court approves applying strict preventive detention laws for 'cybercriminals'
  • SBI likely to shift part of operations of its Global Market Unit from Kolkata to Mumbai
  • FM nirmala Sitharaman calls for a "structured, process-driven approach to compliance" and asks top I-T officials to speed up refunds and simplify processes
  • Marine insurance costs surge as the oil corridor in Strait of Homruz becomes risky due to war
  • Stocks weaken on Monday on global cues: sensex sheds 511 points to 81896 and Nifty 140 points to 24971
  • Former left-arm spinner Dilip Doshi dies in London at 77. He played for India in 33 Test matches and for Bengal in domestic tournaments
  • Pant becomes the only keeper to score two centuries in the same Test in England
  • England Test: Rishabh Pant hits his second ton and KL Rahul a classy century to put India on top, England need 350 runs on the last day, with the ptich showing signs of wear and tear
  • DGCA orders an audit of the entire aviation ecosystem in the wake of recent snags in many flights after the AI Dreamliner crash in Ahmedabad
  • 2 Pahalgam residents arrested by NIA for sheltering and aiding 3 terrorists who killed civilian tourists in pahalgam tell the agency that there were 3 LeT ultras from Pakistan that carried out the attack
  • India unlikely to agree to US demands for lower tariffs on agri products and GM food, trade deal faces fresh hurdles
  • Stocks likely to plummet today as traders will be worried about the effect of US strike on iran, oil price rise and possible inflation. Foreign funds may also withdraw in the volatile global situation
  • Oil prices likely to shoot up as US strikes at iran and the latter decides to close the Strait of Homruz
US President Donald Trump unilaterally announces a 'ceasefire' between Israel & Iran
oppn parties
Monday Bloodbath: Bears Take Firm Control Of Stock Markets

By Linus Garg
First publised on 2022-01-24 14:54:11

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

There was bloodbath on Indian bourses on Monday. Benchmark indices slumped by more than 3% in intraday trades before recovering slightly in closing trades. Yet they closed lower by over 2.6%.

On January 17, Sensex stood at 61308 and Nifty at 18308. On January 24, they were at 57491 and 17149 respectively. In five straight sessions, Sensex has lost over 3800 points and Nifty 1150 points. In the process, Rs 19.50 lakh crore investor wealth has been wiped out.

When the third wave of Covid infections started in India, the markets remained nonchalant as it was clear that there would be no national lockdown and preventive measures would be limited to micro-containment and less restrictive local lockdowns that would be less disruptive for supply chains and the economy as a whole.

But now, with continued foreign funds outflow, negative sentiments in bourses worldwide, the upcoming US Fed review where it is widely expected that the Fed will start the process to squeeze out liquidity from financial markets and the hammering of IT stocks has meant that bears have taken over the markets.

Experts are seeing this as a correction as according to them the market was in the grip of bulls and some stocks were valued much above their actual worth. Some experts are also comparing it to the dotcom bust or the crash in 2008. Still others are saying that this correction will afford investors to pick up stocks at good prices.

But the fact remains that nothing fundamental has changed since January 17. Then why is the market behaving in this manner? Further, has the bottom been reached or will the equities slide further? These are questions that will trouble investors. Hence, it is better if investors follow the policy of wait and watch and keep tracking the movement of their preferred stocks before taking decisions.

Picture courtesy: shutterstock (caption ours)