“What I see is an India that is an oasis in the world. Whose Rise will not be impeded in the medium to long term,” Mahindra said in a tweet.
The billionaire businessman was responding to a tweet from ‘Indian Tech & Infra’ which said that “Stock market crashes all over the world. Indian stock market wipes out more than 10 lakh crore in a single day”.
Today, the headline indices S&P BSE Sensex and Nifty fell 3.3% to hit the day’s low of 78,295.86 and 23,893.70, respectively. This was a 2,686 points correction in Sensex and 824 points for Nifty.
Among major Asian indices, Nikkei 225 fell the most by over 12% while Hong Kong’s Hang Seng and China’s Shanghai Composite plunged 1.46% and 1.54%. Singapore’s FTSE Straits Times Index also declined by 4.27%.Amid a bloodbath on the Street, India’s headline index Nifty today almost tested the 50-day moving average of 23,840 as it fell to the day’s low of 23,893.70 courtesy index heavy weights Reliance Industries (RIL), HDFC Bank and Infosys. The 50-stock index, however, fell below its 30-DMA, replicating a rout in most Asian indices.While it managed to remain above its 50-DMA, 100-DMA, 150-DMA and 200-DMA, its sharp intraday fall dragged it below 5, 10, 20 and 30 DMAs.”This significant sell-off in domestic equities has been primarily driven by weak global sentiments following disappointing US economic data, particularly non-farm payrolls, manufacturing PMI, and jobless claims, which have raised concerns about a potential economic slowdown in the world’s largest economy,” Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services said.
Moreover, yen carry trade has further dampened global sentiment with Nikkei 225 falling by over 12% on Monday. Hong Kong’s Hang Seng and China’s Shanghai Composite fell up to 1.5%.
The change of fortunes is on account of a slew of headwinds including fear of a US economic downturn and Bank of Japan’s monetary policy decision where the central bank raised policy rates by 25 bps.
All 16 sectoral indices were in deep red with Nifty Realty, Nifty Metal showing the worst performance. Both were down by over 4%.
The market capitalisation of all listed companies on BSE declined by Rs 17 lakh crore to Rs 440.16 lakh crore. The fear gauge India VIX surged 59%, seeing the biggest spike since 2015.
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