oppn parties Stock Markets: A Huge Correction

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News Snippets

  • 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
Stock Markets: A Huge Correction

By Linus Garg
First publised on 2023-09-21 03:32:47

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.

The Indian stock markets crashed on Wednesday. BSE Sensex lost 796 points to end at 66800 and the Nifty 50 shed 232 points to close at 19901. The downslide was reflected in all sub-indices like the small- caps and mid-caps and also in sector-based indices. The biggest loser was HDFC Bank which plunged 3.87%, much more than the fall in the benchmark indices. Although there was no immediate trigger for the fall, rising crude prices have stoked fears of another round of inflation and consequently the view among experts is that RBI will delay cutting key policy rates. This might impact growth in the short term.

The crash on Wednesday reversed an 11-day rally in the markets which was the longest in 16 years and which added 3000 points to the Sensex. During this time, Nifty crossed 20000 for the first time. But finally, traders were spooked by rising oil prices, the weakness of the rupee, the US Fed's hawkish stance going ahead and the selling by foreign funds. Domestic funds also turned net sellers with an outflow of Rs 573cr.  HDFC Bank alone shaved off 482 points from the Sensex. The slide resulted in investors losing as much as Rs 2.9 lakh crore in a single session.

Although this can be seen as a correction which many veteran traders were predicting will happen after a prolonged rally, the domestic and international factors that weighed in on Wednesday will remain for some time. Oil prices are expected to rise further and with the dollar remaining strong, the rupee is likely to slide more. Investors need to exercise caution but there is no need to indulge in panic selling as market fundamentals are strong.

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