Post Budget: Investors Lose 10 Lakh Crores!

The Indian Markets were on a massive bull-run until the budget-2018 on 1st February. But, they are hit by three consecutive sessions in red.

From a peak of 11,130 points on 29th January, Nifty has fallen to 10,498 by the end of Tuesday session. Which means index is plummeted by 5.28%. Unbelievably, in this steep fall, more than INR 10 lakh crores of investors’ money has been evaporated from markets. Nifty companies like Reliance and HDFC Bank lost close to 10% of their market capitalization – in numbers, these companies lost close to 1.2 lakh crores capital in less than a week.

While the fears of LTCG (Long Term Capital Gains) tax, which was re-introduced in Budget-2018, triggered the fall on last Thursday – it has been extended by a vertical fall of US and global markets on Monday. In what can be called as a largest intra-day fall, DOW Jones (US Market Index) corrected by 1179 points (4.6%). What’s the reason? – Worry of rising interest rates by FED, concerns over raising rates and inflation.

Apparently, this plunge drove global indices and spread across the world. Coming to Indian markets, large-cap stocks – Larson & Turbo, Maruti Suzuki, ICICI Bank, TCS, Tech Mahindra and State Bank of India erased 2 lakh crores from the market.

If the global sell-off continues further, small investor would get wiped out and small companies will go haywire. However, market experts and economists see this fall as a good opportunity to enter the bull run in coming days.

Fortunately, US signaled a positive sign on Tuesday as the opening 500-point fall has been wiped out by investors and DOW witnessed a high of 367 points.


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