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

News Snippets

  • Rajasthan Police arrest Md Riyaz Akhtari and Gaus Mohammed for beheading the tailor in Udaipur
  • Curfew imposed in 7 police station areas in Udaipur and internet services suspended across Rajasthan as a tailor is beheaded in Udaipur for his social media post in support of Nupur Sharma
  • West Bengal chief minister Mamata Banerjee says the state will not give preference to Agniveers as it will clean "BJP's dustbin"
  • Enforcement Directorate asks Shiv Sena leader Sanjay Raut to appear before it on Friday
  • Devendra Fadnavis meets Amit Shah, discusses tie-up with Shinde
  • Rebels reject Uddhav Thackeray's emotional appeal to come and discuss the issues
  • BJP wants MVA government to face floor test, petitions the government on the same
  • Rupee hits a new low of 78.84 against the dollar, might breach the 79 mark
  • Hotel rooms below Rs 1000 and unbranded packed food to be brought under GST
  • Pallonji Mistry, the head of the Shapoorji Pallonji group, dies at 93. He was the single largest shareholder of Tata Sons with a 18.4% stake
  • India just about manage to beat a rampaging Ireland as the latter make a valiant attempt to chase down India's mammoth score of 225 in the second and final T20. India won by 4 runs
  • Experts believe that the time granted by the Supreme Court to rebel MLAs paves the way for holding a floor test in the Maharashtra assembly
  • Uddhav Thackeray strips rebel ministers of portfolios but stops short of sacking them
  • PM Modi says that energy access should not be limited to rich nations
  • BJP says it is ready with a plan and a new government in Maharashtra may be sworn in by Sunday
Uddhav Thackeray resigns as Supreme Court does not provide relief /////// Jasprit Bumrah to lead India in the 5th Test against England as Rohit Sharma ruled out due to Covid
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.