Stock Market Crash Gains Pace Amid Sharp Negative Cues
Image credit X.com @NSEIndia
Rupee Sinks To All-Time Low Amid Strong Dollar & Bond Yields
By S Jha
New Delhi, October 22: Nifty lost another 300 points on Tuesday to close at 24472. Sensex was poorer by 930 points. Bank Nifty lost almost 700 points on Tuesday.
The crack in the indices came after strong opening in the early sessions of Tuesday. The losing momentum gained after indices broke through all support levels for the day.
Nifty smashed the last support at 24646. The break of the level brought intensity in the fall of the 50-share index. The Sensex lost 930 points to come closer to 80k level in extensive routs in the stock market.
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The sudden collapse of the indices are being attributed to a host of issues. The earning season so far disappointed the street per market participants.
The sentiments of the street soured with second quarterly results of TCS and Infosys. High valuations of the stocks are not finding justification from the quarterly results per market participants.
The foreign institutional investors continue to short the Indian equity markets. The FIIs accounted for a net sell of ₹3979 crores on Tuesday. The domestic institutional investors despite pumping ₹5869 crores failed to arrest the rout in the equity markets.
The rupee also slipped to an all-time low of ₹84.007 against dollar. The strength in the dollar came amid fears that the US Federal Reserve may not be aggressive in rate cuts. Also, the bond yields in the US spiked.
As per convention, strong dollar and rising bond yield in the US spook equity markets in the emerging economies, including India. The US bourses also slipped yesterday while continuing with losses in early sessions on Tuesday.
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The fear of recession in the US, as well as the commencement of the earning seasons, is keeping the investors on the toes. The FII pullout is making investors jittery.
The deepening crisis in the Middle East is further worsening the market sentiments per market participants. Israel offensives in Lebanon continue to keep the world on the edge.
The likelihoods of Iran and Israel tension flare up are also worrying the market participants. The growing vulnerabilities of Israel to rocket attacks of the Hezbollah and Iran threaten a limited military conflict in the Middle East, warn market participants.
India-Canada tension is also concerning investors. Market participants are keeping close eyes on actions of the Canadian pension fund participation in the Indian equity markets. They assess current investment of around $85 billion from the Canadian pension funds in the Indian equities.
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