Sensex plunges 867 points on global headwinds, equity benchmarks see massive sell-off
时间:2024-06-02 05:48:50 阅读(143)
The equity benchmarks underwent a massive sell-off on Friday, with the Sensex falling over 1,000 points intra-day to slip below the 55,000 mark amid weak global cues and worries over slowing global growth. The Bank of England, while raising interest rates, warned about a possible shrinkage in the economy in 2023. Prior to this, the US Federal Reserve raised interest rates by 50 bps, which is the highest in 22 years, and the Reserve Bank of India (RBI) in a surprise move hiked the repo rate by 40 bps.
The market’s fear gauge climbed another 4% on Friday to 21.25. Investor wealth, reflected by the total market capitalisation of all BSE-listed companies, declined by Rs 4.47 lakh crore to Rs 255.17 lakh crore, compared with Rs 259.64 lakh crore in the previous session. The decline was broad-based as 14 out of the 15 sectoral gauges compiled by the NSE ended in the red on Friday – with the Nifty Realty and IT falling 3.5% and 2.2%, respectively. The Nifty Bank declined 1.8%. The broader markets, however, underperformed the benchmark indices as both the BSE mid-cap and small-cap indices fell over 2% each.
After falling 1,116 points intra-day, the Sensex ended lower by 866.65 points or 1.5% to 54,835.58 while the Nifty-50 declined 271.40 points or 1.6% to close at 16,411.25. The Nifty now stands 831 points lower from its 200-day simple moving average of 17,242.13. Further, with Friday’s fall, the benchmarks also marked the fourth straight week of decline amid several global headwinds.
gGlobal sell-off on account inflation concerns, hawkish central banks commentary and surge in US bond yield to above 3% has led to the fall on Friday. Further, no signs of abatement on the war front continues to keep supply issues aggravated, which is increasing the pressure on corporate margins. We expect the markets to remain volatile in the short run due to multiple moving parts,” Hemang Jani, head – equity strategy, broking and distribution, Motilal Oswal Financial Services, told FE. However, he believes that the sharp correction in the markets is also providing a good entry point for investors to accumulate blue-chip stocks.
Markets in the US posted massive losses overnight – with the Nasdaq composite falling 5%, its highest one-day percentage decline since June 2020. Dow Jones and S&P 500 declined 3.1% and 3.5%, respectively. In Asia, except for Japan’s Nikkei 225, all other major indices ended in the red on Friday. Shanghai fell 2.1%, while Hang Seng ended lower by 3.8%.
Deepak Jasani, head of retail research, HDFC Securities, said: “The US dollar hit 20-year highs and world stocks fell towards their lowest in over a year on Friday as markets expected more US interest rate rises, while Asian stocks fell on worries about the hit to growth from China’s zero-COVID policy.”
猜你喜欢
- Centre extends time period for stock limits on tur, urad by two months till December 31
- Marico, GCPL eye growth in single digits
- Mahindra & Mahindra, PC Jeweller among 72 BSE stocks to hit new 52-week highs; Parsvnath Developers at new low
- Alibaba’s $20 billion logistics arm gears up for Hong Kong IPO
- China’s economy has become ‘more resilient and dynamic than before’, says President Xi Jinping
- Long term stock market view positive but remain cautious at current levels - INTERVIEW
- Analyst Corner - Mindtree Q2 results deliver a beat on all parameters
- tions and academic institutions have computed logistics costs, which are widely quoted to stress the point that India is a country with high logistics costs.” In addition to the ones I mentioned earlier, NCAER cites three—Armstrong and Associates (2017), an estimate of 13% of GDP; CII (2015), an estimate of 10.9% of GVA; and NCAER (2019), an estimate of 8.9% of GVA. Clearly, there are variations in what is being measured and how. This new NCAER report uses supply and use tables. What does it find? In 2021-22, logistics costs had an estimated range of between 7.8% and 8.9%. In 2014-15, they had an estimated range of between 8.3% and 9.4%. There has been a decline over time (with a transient increase in 2017-18 and 2018-19). It cannot be anyone’s case that this new NCAER report is the last word on the subject. But it is a beginning, with a clear methodology. And two points emerge. First, logistics costs aren’t as bad as they are often made out to be. Second, they have declined over time (also evident from LPI).
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.
- Chai pe Charcha with BrandWagon_1