Tuesday, March 19, 2024
Follow us on
BREAKING NEWS
हरियाणा में नायब सिंह सैनी कैबिनेट का आज शाम साढ़े 4 बजे होगा विस्तारनोएडा: एल्विश यादव ने सांपों का जहर मंगवाने की बात कबूली- सूत्रदिल्ली जल बोर्ड घोटाला: ED के समन पर आज पेश नहीं होंगे सीएम केजरीवालदिल्ली सरकार के पूर्व मंत्री सत्येंद्र जैन को कोर्ट से झटका, आज ही सरेंडर करने का दिया आदेशतेलंगाना की राज्यपाल तमिलिसाई सुंदरराजन ने राज्यपाल के पद से दिया इस्तीफाचंडीगढ़:चौथी योगासन खेल चैम्पियनशिप आयोजित सांपों के जहर के मामले में एलविश यादव को नोएडा पुलिस ने गिरफ्तार कियालोकसभा 2024 के आम चुनाव की घोषणा के साथ आदर्श आचार संहिता हो गई लागू, अब नई विकास परियोजनाओं की हरियाणा सरकार घोषणा नहीं कर सकती-मुख्य निर्वाचन अधिकारी
National

Markets log worst day in four months as foreign funds exit

September 25, 2020 06:50 AM

COURTESY HT SEPT 25

Markets log worst day in four months as foreign funds exit
Foreign investors have sold a net $241 million worth of Indian stocks so far this week

Rising cases of Covid-19, and the emergence of a new geopolitical flashpoint in East Asia have threatened to stall market recovery. mint
Nasrin Sultana

nasrin.s@livemint.com

mumbai : Indian stocks plunged by the most in four months on Thursday, as the fragile global economic recovery threatened to stall amid a resurgence in coronavirus cases and a new geopolitical flashpoint emerged in East Asia.

Benchmark indexes slumped by 3%, led by financial stocks. The National Stock Exchange’s Nifty breached the psychological 11,000 mark.

The Sensex ended at 36,553.60, shedding 1,114.82 points or 2.96%. The 50-share index Nifty was at 10,805.55, losing 326.30 points or 2.93%.

Foreign investors have sold a net $807.4 million (about ₹5,950 crore) worth of Indian stocks so far this week, contributing to a 0.45% decline in the Indian rupee against the dollar, Bloomberg data showed.

On Thursday, the rupee weakened 32 paise to 73.89 against the US currency as foreign fund outflows weighed on investor sentiment.

The volatility in the Indian markets is likely to continue for some time, setting itself on course for a correction after a rapid rebound from March lows, as soaring stock prices amid a faltering economy made investors nervous, analysts said.

“Though the domestic markets have been under selling pressure mostly due to global peers, there is likely to be some more weakness. Typically, markets fall in the 10-15% range from the peak in similar scenarios,” said Pankaj Pandey, head of research at ICICIdirect. “The outcome of the US presidential elections may add to nervousness in India.” However, he added that the current corrections are healthy as stocks valuations had run ahead of fundamentals. Rising cases of the novel coronavirus and the US Federal Reserve’s warning about a fading recovery remained the key cause of worry for investors worldwide.

MSCI’s broadest index of Asia-Pacific shares, excluding Japan, fell by 1.93%. The Kospi in South Korea declined 2.59% as North Korean troops shot dead a South Korean official who went missing this week, and then set his body on fire in what was likely an effort to prevent a coronavirus outbreak.

Hong Kong’s Hang Seng fell 1.7% and Japan’s Nikkei declined 1.11%.

The US Federal Reserve said on Wednesday that the US economy remains in a “deep hole” of joblessness and weak demand, and called for more fiscal stimulus, noting that policymakers “are not even going to begin thinking” about raising interest rates until inflation hits 2%.

Meanwhile, the Indian markets have fallen around 9% from the highest level it touched on 31 August in the period after March-end.

In this period, Indian stocks showed resilience despite rising coronavirus cases, geopolitical tensions, and economic slowdown. While the disconnect between the state of the economy and the equity markets is not uncommon, the degree to which the stock market bounced back had surprised analysts.

“Our investment committee expects the equity market to see some downward pressure in the coming weeks as profit booking may set in. However, from a medium-term perspective, we still expect positive returns from equities as we believe equity as an asset class should see support from ultra-loose monetary policies by the major central banks. We recommend investors to use this weakness to build exposure to large private sector banks from a 12-18 months’ perspective,” Credit Suisse Wealth Management, India, said in a note on September 15. The India VIX, or volatility index, surged by 12.32%, signalling that the market correction may last longer.

“The market breadth is extremely weak and extremely oversold,” Shrikant Chouhan, executive vice-president, equity technical research at Kotak Securities said.

As investors across the globe dump equities, Chetan Ahya, chief economist and global head of economics, said that investors need to keep a watch on US fiscal policy, election-related uncertainty, risk of a potentially severe wave of Covid-19 infections and fatalities that may force policymakers to take more drastic curtailment measures; and idiosyncratic political risks in emerging markets, excluding China.

Reuters contributed to the story

Have something to say? Post your comment
 
More National News
तेलंगाना की राज्यपाल तमिलिसाई सुंदरराजन ने राज्यपाल के पद से दिया इस्तीफा गुजरात यूनिवर्सिटी में विदेशी छात्रों पर हमले का मामला, गृह राज्य मंत्री ने DG और CP को दिया कार्रवाई का आदेश तेलंगाना: लोकसभा चुनाव से पहले BRS सांसद डॉ रंजीत रेड्डी ने पार्टी से दिया इस्तीफा चुनाव में हिंसा का कोई स्थान नहीं, इसे रोकने के लिए सख्त कदम उठाएंगे: मुख्य चुनाव आयुक्त PM मोदी आज कर्नाटक के कलबुर्गी में जनसभा को करेंगे संबोधित
लोकसभा चुनाव से पहले पीएम मोदी ने देशवासियों को लिखी चिठ्ठी,अपनी सरकार के महत्वपूर्ण कार्यों और उपलब्धियों का किया जिक्र
चुनाव आयोग शनिवार 16 मार्च को लोकसभा चुनाव की घोषणा करेगा,शनिवार दोपहर 3:00 बजे चुनाव आयोग की प्रेस कॉन्फ्रेंस,चुनाव आयोग ने दी जानकारी
बंगाल सीएम ममता बनर्जी को सिर पर लगी गंभीर चोट
राजेश कुमार गुप्ता और प्रियांश शर्मा भारत के चुनाव आयुक्त नियुक्त किए गये
आंध्र प्रदेश कांग्रेस उम्मीदवारों की स्क्रीनिंग कमेटी की आज दोपहर 2 बजे दिल्ली में होगी मीटिंग