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  • Supreme Court questions the continuing relevance of two-child norms. The Court observed that falling fertility rates have weakened the population-control rationale behind laws disqualifying people with more than two children from contesting local body elections. It referred the issue to a larger Bench for consideration
  • Supreme Court declines to shift Tirupati laddu case outside Andhra Pradesh. The Court rejected a plea seeking transfer of the trial, despite arguments that political statements by Andhra Pradesh's Chief Minister and Deputy Chief Minister could affect the fairness of proceedings
  • Supreme Court transfers Azam Khan's fresh ED bail plea to Allahabad High Court. The apex court declined to consider the Samajwadi Party leader's bail request in a fresh Enforcement Directorate case and directed that it be listed before a division Bench of the High Court on November 16
  • Two killed in Delhi building collapse; contractor booked. Two bodies were recovered after a building collapsed in Chawri Bazaar. Delhi Chief Minister Rekha Gupta said the contractor had been booked and the concerned junior and assistant engineers suspended
  • Uttar Pradesh voter rolls show a 2.4-crore discrepancy. A difference of approximately 2.4 crore names has been reported between the state's panchayat and rural Assembly voter lists. The Election Commission has ordered the two sets of rolls to be matched
  • Gujarat announces 3% dearness allowance hike. The state government announced a three-percentage-point increase in dearness allowance for government employees and pensioners ahead of Diwali
  • Sensex and Nifty post their strongest single-day gains in months. The Sensex surged 2,008.61 points, or 2.60%, to close at 79,310.01, while the Nifty 50 climbed 576 points, or 2.40%, to 24,536.60. Financial and automobile stocks led the rally, supported by falling crude prices and renewed foreign investor buying
  • Maaya Rajeshwaran reaches WTA-level quarter-final. The 17-year-old Indian defeated Poland's Weronika Falkowska 6-4, 6-3, becoming the first Indian woman since Sania Mirza in 2012 to reach a quarter-final at a WTA Tour-level singles event
  • Tanvi Patri reaches Youth Olympics badminton final. The 15-year-old defeated Japan's Yuzuno Watanabe in the semi-final, assuring India of a medal and becoming the first Indian badminton player to reach the girls' singles final at the Youth Olympics
  • India beat Pakistan 3-2 in SAFF Championship. India defeated Pakistan in a closely contested match, having led 3-0 before conceding two late goals. The victory was reported as a significant result for India's second-string side
  • India beat Japan 4-1 to win a record sixth Asian Champions Trophy. India recovered from an early deficit to defeat Japan in the final at Mohali, extending its record as the tournament's most successful men's team
  • The Supreme Court issued notice to the Centre and the Election Commission on a petition challenging Section 16 of the Chief Election Commissioner and Other Election Commissioners Act, 2023, which grants the CEC and Election Commissioners protection from legal proceedings for acts performed in their official duties. The petition argues that such blanket immunity could leave citizens without an effective remedy for alleged wrongdoing by the Commission
  • The Supreme Court told voters whose names were deleted from Delhi's draft electoral rolls not to be apprehensive about seeking re-enrolment through Form 6, after the Election Commission assured it that such applicants would not be prosecuted merely because their names had appeared in earlier rolls
  • Congress leader Rahul Gandhi opened the party's campaign for the 2027 Punjab Assembly elections with an Insaaf rally in Sangrur, Chief Minister Bhagwant Mann's home district, accusing the AAP government of failing to control drugs, gangster violence and corruption. Congress president Mallikarjun Kharge outlined six commitments, including a drug-free Punjab, protection of farmers, employment for young people and action against corruption
  • Rahul Gandhi accused the AAP government of running Punjab through a remote control from Delhi and questioned Bhagwant Mann's ability to tackle drug abuse, making personal allegations about the Chief Minister's conduct during their time together in Parliament
Stock markets on fire due to US results, Sensex gains 2008 points to reach its highest level in 8 months
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Stock Markets Crash Heavily

By Sunil Garodia
First publised on 2024-01-17 10:43:41

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

There was bloodbath on Dalal Street on Wednesday as markets crashed big time after a big rally a couple of days back. Sensex lost 1628 points or 2.23% to close at 71500 and Nifty lost 460 points or 2.09% to close at 21571.  The immediate trigger for the huge fall was the hawkish stance of US Fed regarding rate cuts which led to spike in yield in US 10-year treasury bonds and a rise in the dollar index. Locally, the market was concerned about the pressure on net interest margin of HDFC Bank although the December quarter results of the bank were as per expectation. The meltdown in HDFC Bank shares, which lost 8.44% today, was a big contributory factor in the crash as it pulled down the price of the shares of other banks also. The Nifty Bank was down 4.3% on persistent sell-off. In the last two trading sessions, the indices have wiped out all the gains made last week and till Monday this week.

The Federal Reserve Governor Christopher Waller said that "I see no reason to move as quickly or cut as rapidly" as in previous rate-cutting cycles, as long as labor markets and economic activity is solid. He added that "when the time is right to begin lowering rates, I believe it can and should be lowered methodically and carefully." The yield on US 10-year treasury bonds spiked to 4% after his comments and stock markets the world over tumbled on selling pressure. Investors in India read this as a signal that the RBI's monetary policy committee will also not cut rates given that inflation remains high in India too. This led to a sell-off, both by foreign and domestic investors.

On the other hand, while HDFC Bank posted good numbers for the December quarter and it met the expectations of the market, analysts found that there was huge pressure on net interest margins and costs were rising too. They said that it meant that going ahead banks would be hard pressed to maintain the level of profitability. HDFC Bank reported an increase of just 4% in net interest income for the December quarter. Analysts said that this meant that operating profit growth drivers were not sustainable (meaning operating profit would go down going ahead). This immediately led to a sell-off in HDFC Bank in particular and all other banks in general. This dragged Nifty Bank down by 4.3%. 

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