oppn parties Huge Crash In Stock Markets

News Snippets

  • PM Modi says that if Congress is voted to power in Haryana, the state will face the same financial problems that Himachal is facing under the party's rule
  • Competition Commission of India has said that smartphone majors are colluding with e-commerce firms to exclusively launch products on their platforms in alleged breach of anti-trust laws
  • Supreme Court rules that delay in claiming compensation for land acquisition by the government is no excuse to deny it as it is the duty of the government to pay the compensation.
  • PM Modi said that terrorism was breathing its last in J&K
  • Conbgress has alleged that Sebi chief Madhabi Buch traded in listed securities and invested in China-focused funds during her tnure at the agency
  • India to sing $4bn Predator drone deal with US
  • Union Minister Nitin Gadkari has disclosed that the opposition parties backed him as Prime Minister in place of Narendra Modi but he refused.
  • Noted economist Ajit Ranade removed as VC of Gokhale Institute of Politics & Economics in Pune due to not fulfilling eligibility criteria related to teaching experience
  • Chess Olympiad: Arjun Erigaisi wins his fourth consecutive game
  • Asian Champions Trophy hockey- India beat Pakistan 2-1 in a tough match to remain unbeaten in the group stage. They will meet Korea in the semifinals
  • Davis Cup: S Balaji and R Ramanathan lose, India 0-2 down on first day
  • Delhi Police arrested Sangram Dass, said to be the kingpin of an inter-state new-born baby tafficking racket, from Kolkata after a 1500-km chase
  • NC leader Omar Abdullah alleged that the B|JP was forging secret deals with some regional parties and independents to form the government in J&K
  • Rajasthan Police has devised a Standard Operating Procedure (SOP), as directed by the Rajasthan HC, to help married and live-in couples facing threats from families and others. It icludes helplines and safe houses
  • A 3-storey building collapsed in the busy Transport Nager area in Lucknow killing 8 and injuring 28 others
Junior doctors do not agree to meet Bengal CM Mamata Banerjee without live-streaming of meeting /////// CBI arrests ex-principal of R G Kar College Sandip Ghosh and OC of Tala PS in Kolkata, Abhijit Mondal' for destrcution of evidence in the rape-murder case
oppn parties
Huge Crash In Stock Markets

By Linus Garg
First publised on 2023-10-27 08:44:43

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

On Thursday 26th October, stock markets, which were on slippery ground for the last five trading sessions, saw huge selling by foreign funds due to the worsening war situation in the Middle-East. The Sensex crashed by 901 points on the day, taking the total losses to nearly 3300 points in just six trading sessions. Investors have lost a combined Rs 17.8 lakh crore in these six sessions. Along with the scare generated by the war-like situation in Gaza, foreign funds are also withdrawing funds as the yield on government bonds in the US is rising.

Initially, given Israel's record of responding promptly and harshly to any security threats, the markets had discounted the situation there and thought that the matter will end with a retaliatory strike by Israel. But with hostages in captivity, Hamas has an upper hand as of now and it seems that the situation will remain tense for a longer period. That is likely to affect economies around the world as supply chains will be disturbed and demand will go down.

There has not been any fundamental change in the attractiveness of Indian stocks in the last 15 days. The markets were rising even after the Hamas attack. But it seems that foreign funds have now accounted for a long-drawn affair in Gaza that will lead to uncertainty. Still it is dismaying that foreign funds are withdrawing funds from India, a country that is not likely to be majorly disturbed by the conflict. Hence, the crash in the market is an opportunity for the shrewd investor to pick up selected and fundamentally-strong shares at a discount. For those who had invested when the markets were rising, this is not the time to sell. They must hold and wait for the situation to improve.