Free-fall in markets is a great time to bargain; says Anand Mahindra

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Updated: February 6, 2018 3:41:09 PM

As Indian stock markets witnessed a knee-jerk reaction on Tuesday, Anand Mahindra has said that a free-fall in stock markets is in his opinion and a great time to bargain in equities.

Anand Mahindra, Chairman, M&M Group. (Image: Reuters)

A knee-jerk reaction was observed in India’s stock markets with Sensex falling as much as 1,274 points within minutes of opening up of markets on Tuesday. The massive plunge in the Indian stock markets was steered by the global sell-off. But the ongoing correction in Indian equities didn’t seem to have altered Anand Mahindra’s stock market practices. Chairman of Mahindra & Mahindra Group, Anand Mahindra has said that free-fall in stock markets is in his opinion and a great time to bargain. “A free-fall in the market triggered by a global sell-off is in my opinion, a great time to go bargain hunting; especially when India’s economy is headed northward..Will just have to move swiftly before the market begins to recover..!,” Anand Mahindra posted a tweet as saying.

Meanwhile today, India’s stock markets fell off a cliff as panicky in global markets triggered a sell-off at Dalal Street with Sensex tumbling 1,274 points and Nifty declining as much as 390 points in the opening trades. A massive slide was witnessed in every index be it a broader indicator such as Nifty Next 50 or a sectoral index like Nifty Bank. Among the broader market indices of National Stock Exchange, Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Midcap 50, Nifty Sml100 Free and Nifty Mid100 Free shed 2-4.2%. On the other hand, all of the sectoral indices of NSE traded down with Nifty Bank, Nifty Fin Service, Nifty Pvt Bank, Nifty Auto, Nifty Metal, Nifty PSU Bank and Nifty Realty losing the most.

Investors sentiments seemed to have jolted heavily due to the introduction of a tax on LTCG on equity over Rs 1 lakh, sell-off in equity markets globally. Earlier yesterday, US stock markets witnessed a massive plunge in highly volatile trading with both the key equity indices S&P 500 and Dow Jones Industrial Average sliding over 4%. The Dow Jones Industrial Average index set for the worst intraday-point decline in the history dropping nearly 1,600 points.

The fall in the benchmark S&P 500 index and the Dow Jones Industrial Average were the biggest single-day percentage drops since August 2011, a period of stock-market volatility marked by the downgrade of the United States’ credit rating and the euro-zone debt crisis, Reuters said in a report. The Dow Jones Industrial Average fell 1,175.21 points or 4.6% to 24,345.75, the S&P 500 lost 113.19 points or 4.1% to 2,648.94 and the Nasdaq Composite dropped 273.42 points or 3.78% to 6,967.53.

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