oppn parties Monday Bloodbath: Bears Take Firm Control Of 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
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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)