Sensex, Nifty crack on global sell-off: Here is what market experts say

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Updated: February 6, 2018 11:02:08 AM

Sensex and Nifty 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.

sensex, stock market, economy, indiaThe market was finding it difficult to digest that LTCG tax has been reintroduced, say experts. (Image: Reuters)

Sensex and Nifty 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.The 4 percent crash in US markets wiped out most of their gains for 2018 and led most of Asian indices to open in deep red. The sell-off was triggered by the sharp jump in US bond yields on Friday following the release of US jobs data, which grew at the fastest pace since 2009. The data sparked concerns the US Federal Reserve may raise interest rates quicker than anticipated. Shares of Tata Motors tanked 7 percent.

1)Porinju Veliyath

Amidst the investor scare, ace investor Porinju Veliyath of Equity Intelligence India Private Limited in a note to his PMS clients advises to use this turmoil in the markets as an opportunity to add more funds and grow their money further. “Corrections like this are witnessed keep markets healthy as they keep a check on complacency, leverage and excesses,” he added.

2)Sandip Sabharwal

Sandip Sabharwal of asksandipsabharwal.com  told FE Online, ”The market crash is a bull market correction which comes every two years. The last crash was in February 2016 and those who bought at that time did not regret. The same holds true this time. Most reasons being propounded for the fall are post facto justification. Overall risk reward after the correction is in favour of long term investors.

3)Arvind Sanger

Famous market expert Arvind Sanger of Geosphere Capital Management told ET Now, “Timing for LTCG bad. Indian markets falling due to local factors as well.”

4) Geoffrey Dennis

Head-Global Emerging Market Strategy at UBS says, “ A bit more cautious on India now.”

5)Robert Doll

Global market expert Robert Doll says, “This market will find a bottom soon. We assume this is a bull market correction.”

Major movers

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.

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