oppn parties Huge Crash In Stock Markets

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
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.