Investors lose over Rs 3 lakh crore! Who are thos investors?
Rupee crashes to 66.49 against the U.S. dollar in opening trade
Investors lose over Rs 3 lakh crore! Who are thos investors?
In a stock market bloodbath, benchmark Sensex on Monday crashed over 1,200 points — biggest in over seven years — amid a global rout, while more than Rs. 3 lakh crore got wiped out of the investors' wealth.
The BSE 30-share index was trading 1,205.7 points down at 26,160.37, while the broader Nifty index of NSE was down 353.35 points at 7,946.60.
The overall investors' wealth, measured in terms of total valuation of all listed stocks, was also down nearly Rs. 3.5 lakh crore as it crashed below Rs 100-lakh crore mark and stood at Rs 97,64,237 crore in early afternoon trade.
The loss suffered by the 10 biggest companies in terms of market capitalisation was itself close to Rs. 2 lakh crore.
This is the biggest crash in seven and a half years and the third biggest ever for the BSE benchmark index.
Interestingly, eight out of the top-10 intra-day falls took place in the year 2008. Monday's fall is biggest since January 21, 2008 when the Sensex crashed by 2,062.2 points.
The market was witnessing all-round heavy selling across realty, power, oil&gas, bankex, auto, metal, capital goods and IT sectors.
The 50-unit Nifty fell below the psychological 8,000-mark, while Sensex was seen moving close to 26,000.
'Turmoil in currency long-coming'
Amid free fall in stock markets, the rupee crashed to 66.49 against the dollar, plunging a whopping 66 paise. The rupee has not seen such a low level in almost two years in opening trade.
As stocks and rupee hit new lows, RBI Governor Raghuram Rajan said the country is in a better position than many other economies. "I wish to reassure markets that all macro-economic factors are under control. The country has forex reserves of $380 billion to be used," he said.
He said the turmoil in currency market has "been long-coming and China is only the last step in it."
Oommen Ninnan reports from Mumbai:
Slowing Chinese economy and the devalued Chinese currency Yuan, hit the global financial markets. "It has been a while since we have seen a fall of this magnitude in our equity markets," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd. This fall has largely been in reaction to the global markets carnage, "the second effect of which has been a weaker rupee," Mr. Manglik added.
Global markets have crashed following weeks of reports regarding China's low economic growth as its consumption story falters. This is in addition to other irritants such as Europe's woes and a general slowdown in economies across the globe. The US rebound story too is yet incomplete.
"In such markets", said Mr. Manglik, "The Indian economy still remains a bright spot. Of course, low commodity prices are good for India but a global slowdown is not."
As stock markets witnessed bloodbath today, the Sensex recorded an intra-day fall of 1,153.16 points till noon — making it the biggest crash in about seven years and the fourth biggest-ever for the BSE benchmark index. Interestingly, eight out of the top-ten intra-day falls took place in the year 2008. Today's fall is biggest since October 24, 2008. Following are the ten biggest ever intra-day falls for Sensex so far:
Investors are facing a sharp erosion in the value of their holdings as the SGX Nifty signals a 175-point gap down opening in Nifty futures today. Stocks across Asia are deep in the red with gashes ranging from 3 percent to 8 percent. Stocks in Japan are at 5-month lows and Chinese equities have erased their gains for 2015.
Bears are in full control of all equity markets across the world. Apart from Asia, stocks in the Middle East fell sharply last Friday as a dip in crude oil prices played havoc with balance sheets of countries who depend on oil revenues to finance expenses. Major US indices crashed 3.1-3.5 percent ofFriday as investors and traders grappled with potential slippages in global GDP, led mostly by China. The weekly fall in the US markets was the worst in four years.
Oil futures slipped below the $40/bbl mark in the commodities market. Safe haven demand for Gold and Silver futures is seen. Gold futures posted their biggest weekly rise since January.
Meanwhile, the Nifty Index fell 73 points to 8,299 on Friday. Support is pictured at 8,100 points while resistance is seen at 8,430-8,520 points. The Bank Nifty lost 226 points to 18,057 points on relentless selling in private and public sector banks.
Cash markets are in a sea of red. Foreign Institutional Investors remained net sellers for the fourth day. They sold a whopping 2,417 crores rupees of local shares, the largest sell figure in at least one month. Local institutions stepped up their net purchases with a total of 1,524 crore rupees on Friday.
The derivatives space was in a bear grip. Traders pressed a huge net sale figure of 2,417 crore rupees for Index Futures; Net sales of 439 crore rupees for Stock Futures; Purchases of 1,980 crore rupees for Index options and net sales of 29 crore rupees for Stock Options.
Delivery based selling was seen in BHEL, L&T and Just Dial.
STOCKS TO WATCH
INDIAN OIL CORP: The government intends to sell a 10 percent stake in Indian Oil Corp via an offer for sale of 10 percent equity at a floor price of 387 rupees per share.
Read more at: http://www.moneycontrol.com/news/local-markets/bloodbath-continues-nifty-struggles-below-8k-gail-down-7_2705521.html?utm_source=ref_article
ap down on carnage across the globe as investors worried over Chinese economic growth. The Sensex fell over 1,000 points to 26,359.53; and the Nifty dropped 244 points or 2.94% to 8055.95.
The Indian rupee has touched a fresh two-year low in early trade Monday following sharp sell-off in global markets as investors worldwide worried about Chinese economy. The currency has opened at 66.47 per dollar, the lowest level for the first time since September 2013, down 65 paise compared to 65.83 a dollar seen at Friday's close.
Agam Gupta, StanChart Bank feels the USD-INR will open higher in-line with other emerging market currencies. He expects the USD-INR to open at Rs 66.25-66.30/USD and trade in a Rs 66.10-66.60/USD range.
"We will keep an eye on supply of USD from local government banks but the move in global markets will remain key for the pair at the moment," Gupta said.
The dollar tumbled against the euro and the yen as strikingly amid China growth worries and as hopes dim that the Federal Reserve will raise US interest rates next month.
Major markets around the world suffered bruising losses as investors worldwide became increasingly concerned about Chinese economy. All of the main US indices closed down more than 3 percent on Friday, the fourth consecutive day of falls.
The Dow Jones Industrial Average closed down 531 points, or 3.1 percent, to 16,460 – the S&P 500 lost 3.2% to 1,971 and the Nasdaq closed down 3.5% to 4,706. Major markets around the world also suffered bruising losses as new data suggested Chinese factory activity had slowed to levels last seen in 2009 and added to investors' fears about the country's economy since Beijing devalued its currency last week.
US oil prices also crashed down to below $40 a barrel a one point, a level not seen since the financial crisis. The dollar fell to a two-month low against the euro and added to speculation that the Federal Reserve may now not raise US interest rates next month, as had been widely expected by economists.
The Dow Jones index has lost about 10% from its record closing high on 19 May, mean it is entering a correction – a fall of at least 10% from a recent peak. The Dow has not fallen into correction territory since October 2011.
Friday's fall takes the Dow to its sharpest weekly decline in four years. Stocks had already fallen sharply in Europe, Asia and Australia. In London, the FTSE 100 closed down 180 points, or 2.8%, to 6,187 – the lowest it has been in 2015 and the biggest one-day fall since October 2014.
The UK index closed down for nine straight sessions – its longest losing streak since 2011. The FTSE 100 has fallen by 5.6% this week, Last week, the Dow Jones in the US fell 6%, while the UK's FTSE 100 posted its biggest weekly loss this year of 5%.
Investors are concerned about a slowdown in China and the knock-on effects for the global economy. Both France's Cac 40 and Germany's Dax indexes lost 7% of their value last week.