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

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
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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.