Skip to main content

SenSex Plunge 430 Points

Fag-end selling in domestic equity market wiped off nearly Rs 2 lakh crore in investor wealth on Tuesday. The BSE Sensex tanked 429.58 points, or 1.27 per cent, to 33,317.20, while NSE index Nifty50 plunged 109.60 points, or 1.06 per cent, to 10,249. 

Market capitalisation of BSE-listed companies plunged to Rs 144 lakh crore today from Rs 146 lakh crore in the previous session. 

“Reports suggesting that SFIO summoned bankers, including chiefs of ICICI Bank and Axis  .. 

Here are five key factors that weighed on the indices on Tuesday. 

SFIO summons top bankers: Heavy selling in bank stocks dampened market mood. State Bank of India plunged over 3 per cent in the late afternoon trade. ICICI Bank and HDFC BankBSE -1.07 % dropped 2 per cent and 1 per cent, respectively. 

The Serious Fraud Investigation Office (SFIO) has summoned top bankers, including ICICI Bank CEO Chanda Kochhar and Axis Bank CEO Shikha Sharma, in  in a case related to Rs 5,000 crore loan extended to Mehul Choksi’s Gitanjali Gems. 

The SFIO is said to have summoned senior executives from 31 banks with business dealings with the firms promoted by Nirav Modi and Choksi, PTI reported. 

Trade war escalates: Trump's proposal for steep import duties (up to 25 per cent) on imported steel and aluminium will in all likelihood set the stage for retaliatory action by big trading partners. The chairman of the European Parliament's international trade committee says the EU should target American goods  .. 

Valuations still high: The stock market valuation is still too high and fundamentals need to catch up with them, said a top NSE official. 

“Fundamentals need to certainly catch up with the valuations. So, my hope is corporate earnings and GDP growth over the next few quarters will improve and catch up with the valuations,” Vikram Limaye, Managing Director and Chief Executive Officer of NSE, told IANS. 

Deteriorating macros: Deteriorating state government finances pose a risk to India, which already runs the second-largest budget deficit among major economies, Oxford Economics said in a note. The report further put pressure on Indian equity markets. 


FII selloff continues: Sustained selling by foreign portfolio investors (FPIs) further weighed on domestic equity indices. FIIs have offloaded equities worth of over Rs 1,200 crore in March so far. They had sold shares worth of Rs 11,037 crore in February. 

The News has been taken from Economic Times . 

Comments

Popular posts from this blog

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what  I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...
LIC IPO Shorts  The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM  
  NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...