oppn parties Stock Markets In A Free Fall, Sensex Loses 1600 Points

News Snippets

  • EMI's set to rise after the RBI hikes key policy rate
  • Calcutta HC says that the right to privacy does not end with the death of a person
  • Supreme Court says that a delayed order of preventive detention makes it invalid
  • Shashi Tharoor posts an erronous map of India in his manifesto, rectifies the error after criticism
  • Sonia Gandhi to take a call on who will be Rajasthan chief minister
  • Mallikarujun Kharge to be the new candidate to oppose Shashi Tharoor in the Congress presidential elections
  • RBI says that the September inflation rate may be higher than 7%
  • RBI hikes key rates by 50bps, downwardly revises FY23 growth rate to 7% from 7.2% earlier
  • Stocks recover well on Friday: Sensex gains 1016 points to0 57426 and Nifty 276 points to 17094
  • Mirabai Chanu wins gold easily at the National Games
  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
RBI hikes key rates by 50bps, stocks jump and recover 50% of the losses incurred in the last few session
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Stock Markets In A Free Fall, Sensex Loses 1600 Points

By Ashwini Agarwal
First publised on 2020-03-09 12:55:44

The twin issues of the rapid spread of coronavirus (and the consequent disruption in business) along with the uncertainty over the future of Yes Bank spooked the stock market big time today with the indices going into a free fall. The Sensex has gone down by over 1600 points intra-day while the Nifty slid by 453 points. The mood is one of despondency as many counters have only sellers.

The Indian markets took their cue from the global bourses. Stock markets the world over were down by anything from 3 to 5 percent as the already slowing world economy was expected to suffer a prolonged downturn due to the travelling bans and shipment rescheduling as a result of the coronavirus scare. As more and more positive cases of the disease come to fore across the globe, business productivity is expected to plunge sharply, leading to companies reporting lower profits or even losses. This has eroded customer confidence.

Closer home, despite assurances from the RBI and the interest shown by the SBI and other investors to seriously take up the rebuilding of the troubled Yes Bank, investor confidence is shaken. The markets were already discounting the continuing slowdown in the economy when the coronavirus scare struck. Now the Yes Bank episode has taken the winds totally out of the bulls' sails. Even the report that Brent crude has tumbled to below $40 a barrel and is expected to touch $30 within a short period has failed to improve sentiments. Foreign investors are selling in a big way and the Indian institutions have not been able to pick up all they are selling.

Equities are expected to be under selling pressure in the coming weeks. Investors would be advised not to go long yet. But if the markets continue to slide, there may come a time in a couple of weeks when some stocks will be available at a price too attractive to ignore. That would be the right time for any long term player to make his or her move.