Global panic - Share market freezes again
The tightening of banking and monetary regulations in US and China has caused global panic in the share market. The markets all over the world reacted sharply to the news. All 30 sensex counters closed in red yesterday.
NIFTY SLIPPED below 5,000 as the market opened today in the morning. The selling pressure started because of statements on banking and economy from China and the US. China may further tighten its monetary policy after the double-digit growth in the last quarter and President Obama has proposed new limits on the size and trading practices of big banks. In the early hours today the sensex lost 344 points and Nifty 105 Points in reaction to the news.
All 30 Sensex counters closed in red on Thursday. The overall market breadth was extremely negative with 2,357 declines against only 557 gains on the BSE. The volumes were high at Rs.6, 354.78 crore from Rs.6, 185.95 crore of the previous day signifying a rush to offload stocks as early as possible.
FIIs are booking profit to pull out money from the market ahead of the budget and may reinvest in upcoming mega follow-on-public offer (FPO) by the largest power generation firm, NTPC, which opens on February 3. Another factor is the strengthening of the dollar and the euro which acted as a dampener on the already weak sentiment.
Analysts said China, after its 10.7 per cent GDP growth in the fourth quarter, will have to ease back through monetary and fiscal policy measures. This prompted panic by FIIs. Selling was across-the-board as all sectoral indices ended in the red between 5.15 per cent and 1.42 per cent.
Poor results of engineering giant L&T added to the negative sentiments. L&T is the top loser among the Sensex stocks, having shed 4.2 per cent at Rs.1460. The engineering giant had lost 6 per cent on Thursday. ONGC also disappointed market with its numbers and lost 2 per cent of its value
Suzlon, JP Associates, Tata Power, ABB, Siemens, DLF, IDFC, ICICI Bank, Reliance Power, Tata Motors, SAIL, Jindal Steel and Hindalco were the other losers. The shares of FACT, NMDC, ITI and STC India fell by 5per cent each.
The US markets earlier witnessed the biggest second-day drop since June in reaction to the statement of the President on increased bank regulation in the US and tighter monetary policy in China. Dow Jones lost 213 points or 2 per cent at 10,390. The NASDAQ was down 25.5 points or 1.12 per cent at 2,265 and the S&P 500 was down 21.5 points or 1.9 per cent at 1,117.
FIIs are booking profit to pull out money from the market ahead of the budget and may reinvest in upcoming mega follow-on-public offer (FPO) by the largest power generation firm, NTPC, which opens on February 3. Another factor is the strengthening of the dollar and the euro which acted as a dampener on the already weak sentiment.
Analysts said China, after its 10.7 per cent GDP growth in the fourth quarter, will have to ease back through monetary and fiscal policy measures. This prompted panic by FIIs. Selling was across-the-board as all sectoral indices ended in the red between 5.15 per cent and 1.42 per cent.
Poor results of engineering giant L&T added to the negative sentiments. L&T is the top loser among the Sensex stocks, having shed 4.2 per cent at Rs.1460. The engineering giant had lost 6 per cent on Thursday. ONGC also disappointed market with its numbers and lost 2 per cent of its value
Suzlon, JP Associates, Tata Power, ABB, Siemens, DLF, IDFC, ICICI Bank, Reliance Power, Tata Motors, SAIL, Jindal Steel and Hindalco were the other losers. The shares of FACT, NMDC, ITI and STC India fell by 5per cent each.
The US markets earlier witnessed the biggest second-day drop since June in reaction to the statement of the President on increased bank regulation in the US and tighter monetary policy in China. Dow Jones lost 213 points or 2 per cent at 10,390. The NASDAQ was down 25.5 points or 1.12 per cent at 2,265 and the S&P 500 was down 21.5 points or 1.9 per cent at 1,117.
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