oppn parties Carnage On Stock Exchanges: Investors Lose Rs 6.71 Lakh Crore In A Single Session

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  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
oppn parties
Carnage On Stock Exchanges: Investors Lose Rs 6.71 Lakh Crore In A Single Session

By A Special Correspondent
First publised on 2022-05-19 17:46:06

The stage was set for a rout in the stock markets on Friday as global and local cues were negative. The Dow Jones had crashed by 1000 points or 3% on Thursday and the UK had reported that inflation was at 9%, the highest in over 40 years. With India also reporting that inflation, as measured by the wholesale price index (WPI) had breached the 15% level and was highest in 9 years, investors were spooked. The markets also seem to be getting ready for another big hike in interest rates as the RBI governor gave a hint yesterday by saying that the off-cycle hike was done to prevent the shock of a much bigger hike in the regular June meeting. The RBI is likely to raise rates by 75 basis points, effectively negating the concessions given due to the pandemic and bring rates back to what they were in March 2019.

All this, and the fact that technology stocks have lost investor faith all over the world, meant that the Sensex crashed by 1416 points to end at 52792 and the Nifty slid by 430 points to finish the day at 15809 points. Both the indices slumped by more than 2.5%. As all over the world, IT stocks were hammered down by up to 6% and investors lost as much as Rs 6.71 lakh crore in a single session. FMCG major ITC bucked the trend and rose by 3%. FIIs continued to be net sellers.

The carnage does not seem to have ended as after the Indian markets closed for business, the US markets continued to witness selling pressure. The Dow Jones was down 1.5% on Friday after the big slide a day earlier. This shows that the bears have got a firm grip on the markets and the period of volatility witnessed in Indian markets for over a month now has now become a one-way downhill journey. It is difficult to predict when sentiments will improve as the world battles with inflation, disturbed supply chains due to the war in Ukraine, monetary policy tightening by central banks worldwide and the after effects of a long pandemic. 

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