Indian stock markets recovered most of its losses in the afternoon trades with S&P BSE Sensex recouping over 1,000 points from the day's low of 33,482.81 but volatility in the market remained higher with shares of Bharti Airtel trading in green.
Indian stock markets recovered most of its losses in the afternoon trades with S&P BSE Sensex recouping over 1,000 points from the day’s low of 33,482.81 but volatility in the market remained higher with shares of Bharti Airtel trading in green. BSE Sensex pared off partial losses in the afternoon session making a day’s high of 34,521.01 but was still down by 236.15 points. A marginal intraday recovery was also seen in the wider share indicator Nifty 50. NSE Nifty index added back 317.85 points to the day’s high of 10,594.15 while the India Vix index which measures the volatility traded up about 20%. Shares of blue-chip companies such as Bajaj Finance, Bharti Airtel, Eicher Motors, Tata Steel, L&T, Adani Ports, and ICICI Bank shares showed a little uptick with shares of Airtel gaining up to 1.5%. 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. A subdued action ahead of RBI’s repo rate decision due on 7 February 2018 has also been factored in.
Shares of heavyweight companies such as HDFC, HDFC Bank, RIL, TCS, Infosys, Tata Motors, Kotak Mahindra Bank, Axis Bank, SBI, HUL remained the largest contributor to the Sensex declines. Collectively these 10 stocks alone washed away 427 points out of the 527-point drop in the index as a little uptick in shares of L&T, Tata Steel and Bharti Airtel added about 10 points to the index. Earlier in the day, the benchmark Sensex crashed 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.
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.