Indian stock markets are likely to open lower on Friday following the massive slump in US equities for the second time in the current week. The major US indices plummeted by more than 4% on Thursday providing a sign of a correction in stocks. The Dow Industrials had shed about 10% from its all-time high made on January 26. Earlier yesterday, India’s stock markets snapped the 7-day decline and managed to close in green with Sensex rising as much as 330 points. From 31 January to 7 February 2018, Indian equities were on a declining trend following the global sell-0ff and concerns weighing over LTCG tax after the Union Finance Minister brought the long-term capital gain under the tax net in the Budget 2018.
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- The early indicator of NSE Nifty, SGX Nifty too dived in the early trades on Friday. The SGX Nifty Futures was trading down 241 points or 2.28% at 10,320 on the Singapore Stock Exchange.
- The US stock markets plunged around 4% on Thursday in another dramatic session, confirming a correction that has thrown the market’s nearly nine-year bull run off course, Reuters said in a report.
- The bottom of this recent slide remained elusive for investors, who have been whipsawed this week by huge swings that have shaken a market that had only climbed steadily for months, Reuters added.
- With the yesterday’s decline, the benchmark S&P 500 and the Dow Jones Industrial Average confirmed they were in correction territory, both falling more than 10% from 26 January record highs.
- Corrections are seen as entirely normal occurrences, and the market, currently in its second-longest bull run of all time, hasn’t seen one in two years, an unusually long time. Many market watchers have been predicting a pullback for some time, saying stock prices had become too expensive relative to company earnings, Associated Press said in a report.
- US equities posted massive gains in the January 2018 and were repeatedly making and breaking fresh record highs. The stock markets began to decline from last Friday when US Labor Department said workers’ wages grew at a fast rate in January.
- The Dow Jones Industrial Average fell 1,032.89 points or 4.15% to 23,860.46, the S&P 500 lost 100.66 points or 3.75% to 2,581 and the Nasdaq Composite dropped 274.83 points or 3.9% to 6,777.16.
- Indian stock markets finally ended on a positive note on Thursday after seven days with Sensex scaling as many as 330 points to finish in green after seven days as a sharp uptick in shares of Infosys, Sun Pharma, SBI, HDFC and RIL boosted the key equity indices, also all of the sectoral indices concluded up today.
- The S&P BSE Sensex gained as much as 330.45 points or 0.97% to close at 34,413.16 and NSE Nifty added 100.15 points or 0.96% to conclude at 10,576.85. On Thursday, the volatility in the market dipped relatively as the volatility indicator, India Vix shed 8.69% to close at 17.7725.
- Indian equities ended in a positive territory after an extended dull activity in last seven days due to Budget 2018 implications, global sell-off and uncertainties over RBI’s last policy meeting in FY18.