Bloodbath In Stock Markets, Sensex Tanks Over 1,200 Points
The stock markets on Tuesday morning started with heavy losses. Domestic sentiment has been hit by the Budget announcement of 10 per cent tax on long-term capital gains accrued from equity investments, Sensex fell over 800 points on Friday and over 300 points on Monday and now Reducing American credit rating has had a profound impact on the markets. In addition, the market is heavily deteriorating as Fed’s interest rates increase. Asian stocks too plunged today after a record-breaking loss on Wall Street. This effect has also hit Indian markets.
In the early stocks, the market was trading in the pre-session with heavy losses. At one stage, the Sensex ended up 1200 points, while the Nifty continued to lose over 350 points. At present, the Sensex has lost 937 points at 33,820 and the Nifty loses 283 points at 10,383. Tata Motors, Idea Cellular, Bank of India and Axis Bank are among the biggest losses.
According to the American Times, Wall Street markets have fallen heavily on Monday’s trading. Dow Jones Industrial Average dropped 4.6 percent comparatively with past. At one stage, American market dipped below 1600 points and settled at 25,000 mark. S & P 500 also suffered with heavy losses. The profit that made since the beginning of this year have been lost in a single day.
The Budget’s proposals include the entry into the Budget and fiscal deficit. American stockmarkets dozens, S & P’s indexes have shown the biggest intraday losses. Asian markets have fallen heavily with the Wall Street effect. Japan’s Nicky 4.6 per cent and Australian shares declined by 3.0 per cent. These are the lowest levels since October. South Korean shares also fell by 2 percent.
Tata Motors shares have crashed more than 10% after the results. Metal, realty, capital goods, banking, oil and gas stocks were the major losers. The Indian rupee weakened by 29 paise at 64.36 against the US dollar.
Finance Minister Arun Jaitley on Monday attributed the downslide in the local bourses to selloff in global markets. “It is not due to the Budget or the LTCG (long-term capital gains tax),” he said.
The Market would also be closely watching Reserve Bank of India’s (RBI) policy stance tomorrow. “We expect the RBI to remain on a pause in this policy. However, the tone will likely be more hawkish with probability of rate hikes in FY2019 increasing,” said Suvodeep Rakshit, senior economist at Kotak Institutional Equities.