Mayhem At Dalal Street As Sensex Crashes, Nifty Nosedives

By SM.06 Feb, 2018






NEW DELHI: Markets on Tuesday continued to bleed as the benchmark BSE Sensex opened 1,250 points lower at 33,506 while the NSE Nifty remained below the 10,300-mark. Both Sensex and Nifty tanked over 3 per cent in the opening trade in line with deep losses in world markets.

Sensex remained volatile after witnessing a steep fall in morning trade, however, Nifty moved above the 10,300-level.

A sell-off in global markets further hit sentiments on domestic bourses on Monday which are already reeling under budget woes, pulling the Sensex down by nearly 310 points to a three-week low and the Nifty by 94 points on heavy selling, mainly in banking, capital goods, and IT counters.

Since February 1, the day Union Budget 2018-19 was presented, the 30-share Sensex has plummeted by over 1,208 points in three sessions and the Nifty has lost 361 points during the three-day period.

Investors also turned cautious ahead of the RBI policy meet this week as they feel that repo rate might be increased amid inflation concerns.

"Selling continued in the market as concern over bond yield and weak global market impacted the sentiment. Upcoming RBI monetary policy will be a key trigger for the market, the outcome of which is expected to be status quo, but any commentary over government"s fiscal policy and concern over rising yield will add volatility...," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.

Asian shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011 as investors" faith in factors underpinning a bull run in markets began to crumble.

Major movers
All the shares of BSE Sensex index were trading in red with stock of Tata Motors, Yes Bank, Axis Bank, Tata Steel, ICICI Bank, State Bank of India, Adani Ports, Asian Paints, HDFC Bank, Maruti Suzuki, Hero MotoCorp, L&T, HUL, IndusInd Bank, Kotak Mahindra Bank, HDFC, Coal India, ONGC, ITC, Dr Reddy’s, NTPC, Sun Pharma, Power Grid, M&M, Reliance Industries, Bajaj Auto, Infosys, Wipro, TCS and Bharti Airtel lost 1-8%. The heavyweight shares of companies such as HDFC Bank, HDFC, ICICI Bank, ITC, Reliance Industries, L&T, Tata Motors, Infosys, Axis Bank, Maruti Suzuki, SBI, Kotak Mahindra Bank, HUL, TCS, Yes Bank, IndusInd Bank and M&M contributed heavily in the Sensex declines. Collectively these 17 shares wiped off as much as 890 points out of the index.

Bloodshed in US stock markets
US stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4.0% as the Dow Jones notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year, Reuters said in a report. The slumps in the benchmark S&P 500 index and the Dow Jones Industrial Average were the biggest single-day percentage drops since August 2011, a period of stock-market volatility marked by the downgrade of the United States’ credit rating and the euro-zone debt crisis.

The Dow Jones Industrial Average fell 1,175.21 points or 4.6% to 24,345.75, the S&P 500 lost 113.19 points or 4.1% to 2,648.94 and the Nasdaq Composite dropped 273.42 points or 3.78% to 6,967.53. On Monday, the S&P 500 ended 7.8% down from its record high achieved on 26 January 2018, with the Dow down 8.5% over that time. The declines come after the Dow and S&P posted their biggest weekly percentage drops since January 2016 last week, and the Nasdaq posted its biggest weekly drop since February 2016. At one point, the Dow fell 6.3 percent or 1,597 points, the biggest one-day points loss ever. Even with the sharp declines, stocks finished above their lows touched during the session.