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

News Snippets

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  • RBI bans 5 NBFCs as it cracks down on e-lending platforms
  • Hindustan Motors to tie-up with Peugeot to bring out a redesigned version of the iconic Ambassador
  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
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  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
Yasin Malik of JKLF gets two life terms in terror funding case /////// Kashmir TV artist killed and her nephew injured in a terror attack in Hushroo in Budgam district
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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.