Indian stock markets today came under heavy pressure following the bloodshed on Wall Street. India's stock markets fell off a cliff on Tuesday as panicky in global markets triggered a sell-off at Dalal Street with Sensex crashing 1,274 points and Nifty erasing as much as 390 points in the opening trades.
India’s stock markets fell off a cliff on Tuesday as panicky in global markets triggered a sell-off at Dalal Street with Sensex crashing 1,003 points and Nifty erasing as much as 371.4 points in the opening trades. A market-wide sell-off pattern was observed in the Indian equities as the US benchmark index Dow Jones Industrial Average tumbled as many as 1,175.21 points on Monday, posting its biggest intraday decline in history shedding nearly 1,600 points. BSE Sensex lost 1,003.38 points or 2.89% to open at 33,753.78 whereas NSE Nifty cracked 371.4 points or 3.48% to begin at 10,295.15. The global indicator of NSE Nifty, SGX Nifty Futures faced a knee-jerk reaction in the early trades on Tuesday. The index plunged as many 394 points or 3.68% at 10,315.5 on the Singapore Stock Exchange on Tuesday, its lowest since 18 December 2017. This was the biggest intraday percentage drop since 9 November 2016.
Up until 10:00 am, the benchmark Sensex crumbled 1,274.35 points to hit a one-and-half-month low of 33,482.81 whereas the broader Nifty plummeted 390.25 points to a low of 10,276.3. Meanwhile, Asian markets continue to witness selling pressure on Tuesday following Wall Street’s biggest decline since 2011 as investors’ faith in factors underpinning a bull run in markets began to crumble, Reuters reported.
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.
All the shares of BSE Sensex index were trading in red with stock of Tata Motors, Yes Bank, Axis Bank, Tata Steel, ICICI Bank, State Bank of India, Adani Ports, Asian Paints, HDFC Bank, Maruti Suzuki, Hero MotoCorp, L&T, HUL, IndusInd Bank, Kotak Mahindra Bank, HDFC, Coal India, ONGC, ITC, Dr Reddy’s, NTPC, Sun Pharma, Power Grid, M&M, Reliance Industries, Bajaj Auto, Infosys, Wipro, TCS and Bharti Airtel lost 1-8%. The heavyweight shares of companies such as HDFC Bank, HDFC, ICICI Bank, ITC, Reliance Industries, L&T, Tata Motors, Infosys, Axis Bank, Maruti Suzuki, SBI, Kotak Mahindra Bank, HUL, TCS, Yes Bank, IndusInd Bank and M&M contributed heavily in the Sensex declines. Collectively these 17 shares wiped off as much as 890 points out of the index.
Bloodshed in US stock markets
US stocks plunged in highly volatile trading on Monday, with both the S&P 500 and Dow Industrials indices slumping more than 4.0% as the Dow Jones notched its biggest intraday decline in history with a nearly 1,600-point drop and Wall Street erased its gains for the year, Reuters said in a report. The slumps 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.
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. On Monday, the S&P 500 ended 7.8% down from its record high achieved on 26 January 2018, with the Dow down 8.5% over that time. The declines come after the Dow and S&P posted their biggest weekly percentage drops since January 2016 last week, and the Nasdaq posted its biggest weekly drop since February 2016. At one point, the Dow fell 6.3 percent or 1,597 points, the biggest one-day points loss ever. Even with the sharp declines, stocks finished above their lows touched during the session.
Indian equities on Monday
Indian stock markets finished lower on Monday with the headline indices Sensex and Nifty closing in red for the fifth straight day following the global sell-off in equity markets. BSE Sensex fell as much 309.59 points or 0.88% to end at 34,757.16 and NSE Nifty washed off 94.05 points or 0.87% to settle at 10,666.55. During the day, the S&P BSE Sensex plunged 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty plummeted 173.8 points to hit a day’s low of 10,586.8. Investors sentiments seemed to have jolted down by uncertainties over US job market, the introduction of a tax on LTCG on equity over Rs 1 lakh in India which has led to a sell-off in domestic equities. The market activity was also subdued ahead of RBI’s repo rate decision due on 7 February 2018.