Stock Market Crash sends Sensex Trailing PE to Pandemic Low
Stock Market on Tuesday! (Image credit X.com)
Mutual Funds Face Fury of Stock Market Crash
By S Jha
New Delhi, March 3: Stock market once more plunged even while global cues were positive. Brutal bear attacks on stock continue unabated.
Nifty during early trades plunged by almost 110 points. The 50-share index almost kissed the 22k level. After almost touching 22,000, Nifty recovered marginally.
Bank Nifty finally cracked up to crash below the psychological level of 48,000. The banking index plunged by crashing almost 500 points in early trades.
The indices went crashing despite positive global cues. The US bourses had ended with gains on Friday. The Asian peers were trading with gains on Monday. Still, the Indian indices were in nervous territory.
The stock market went tumbling after a special court in Mumbai ordered FIR under the Prevention of Money Laundering Act (PMLA) against the allegations of fraud in the SEBI when Madhabi Puri Buch was the CEO.
Business Standard in a report said that “the BSE Sensex’s trailing price-to-earnings (P/E) ratio dropped to 20.4x on Friday”. The business daily said that Sensex is now per trailing PE trading at lowest since May 2020. During the pandemic-induced sell-off, the Sensex trailing PE had gone to 19.5x, added the daily.
Nifty Wrestles Congestion Pulls Amid Tug of War in Stock Market
Shares of Reliance Industries contributed majorly to the fall in the stock market. The heavyweight scrip was trading with loss of more than three per cent. Shares of Reliance Industries have significant weightage in Sensex and Nifty.
Tracking Friday gains in NASDAQ, the IT stocks were trading higher on Monday. Shares of Wipro led the gains on the street. Infosys and tech Mahindra from the large caps were also trading higher on Monday in the early trades.
With Nifty almost hovering around 22k level, the market participants are worried of the journey of the index. StockEdge had previously said that Nifty could go to 21800 if the support at 22500 goes away.
Market participants are also worried for the fact that defensive stocks are also cracking. One year return on several of the Mutual Funds’ schemes are trading with losses up to 30 per cent. Losses in mutual funds could trigger loss of faith among the small retail investors, warned market participants.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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