News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Markets »
 FM calms nerves, says no plan to tax market gains
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?

On global economic woes, Stock markets break down
November, 17th 2010

The stock markets crumbled with the expected tightening of monetary policy in China, especially credit to its real estate sector, and worries over Ireland's debt woes.

The 30-share Bombay Stock Exchange (BSE) index declined by 444.55 points or 2.19 per cent to 19865.14, its lowest close since September 23. The benchmark index was up by 13.7 percent so far in 2010. A broader 50-share NSE Nifty lost 132.90 points or 2.17 per cent at 5988.70.

While it is difficult to assign precise reasons to the fall, we opine that, weak overseas markets have likely resulted in this sharp fall in Indian markets, said Dipen Shah, Senior Vice President (PCG Research), Kotak Securities. According to him Global markets have turned weak on the back of concerns of monetary tightening in China and further weakness in some of the European economies.

However, domestic issues were also weighed heavily on Indian market participants. Apart from the change in telecom portfolio which was viewed as an indication of political instability as far the market is concerned, CWG scam, 2G Spectrum scam, Adarsh Housing scam and LIC's loss of Rs. 14,000 crore as reported on Tuesday, really scooped Indian markets. The fear is that what happens if LIC comes for selling as the Big daddy has always been supporting markets whenever FIIs were sellers?

The market was in an overbought state and bears have not shown any inclination to roll short positions and fearing huge carry rates in the absence of proper mechanism. Bulls decided to unwind long positions ahead of holiday on Wednesday. Week end will decide how bulls and bears decide their strategy of roll over of Rs. 160,000 crore in derivatives, said Mr. Ostwal. There is no physical settlement and the fear is that the carry cost could be as high as what we had seen on October 28 last month which has made market participants uncomfortable.

All BSE sectoral indices ended in the negative territory led by realty 3.55 per cent and metal 3.11 per cent.

Metal counters were the worst hit, with copper producer Sterlite Industries plunging the most among the Sensex scrips. The counter shed 5.4 per cent to close at Rs. 172.60 while the aluminium producer Hindalco declined by 5.21 per cent to Rs. 212.05 and the steel giant Jindal Steel 1.13 per cent to Rs. 672. Tata Steel also erased its last session's gains to settle with a loss of 1.91 per cent at Rs. 605.35.

Reliance Industries and the infrastructure giant Larsen & Toubro contributed the most to the overall Sensex loss. While Reliance plummeted by 2.24 per cent to Rs. 1,030.35, L&T tumbled by 2.53 per cent to Rs. 2,007.40 on BSE.

With 29 of the 30 Sensex components ending the day with sharp losses, the telecom giant Bharti Airtel was the only counter that emerged a winner in the falling market with a gain of 1.16 per cent to Rs. 313.10.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions