Very often, 'sentiment' drives prices well beyond what is warranted and it is hard to forecast market sentiment, explains Debashis Basu.
A plea has been filed in the Supreme Court seeking investigation under the supervision of a sitting apex court judge against the Adani group of companies in light of the allegations made by the US-based Hindenburg Research.
IndusInd Bank was the biggest loser in the Sensex pack, shedding 7.46 per cent, followed by SBI, Tata Motors, M&M, Bajaj Finserv, Axis Bank and Infosys. In contrast, Tech Mahindra was the only winner.
Onion prices crashed to Rs 5-20 a kg in wholesale markets of the national capital on Tuesday on the back of improved supply, but retail prices of the vegetable remain high at Rs 40 per kg.
The Centre has no objection to a proposal for setting up a panel of domain experts to look into strengthening the regulatory mechanisms for the stock market, the Supreme Court was told on Monday while it was hearing pleas relating to the Adani stocks rout after the Hindenburg report. The central government, however, told a bench headed by Chief Justice DY Chandrachud that it wanted to give the names of the domain experts for the committee and the scope of its mandate in a sealed cover in larger interest.
The regulator, which is already working on new guidelines to avoid repeat of such incidents, is also investigating whether the flash crash of over 15 per cent could have been avoided or contained at an earlier stage by the exchange.
The 'sudden volatility' in Adani stocks is entirely due to a series of events that was extreme and unique, and played out in too short a period. Investors and regulators pretended that it wasn't so. But then, along came Hindenburg, which forced some eyes to open, points out Debashis Basu.
Market selloff erodes nearly Rs 12 lakh crore of investor wealth. On the BSE, 1,279 scrips declined, while 193 advanced and 40 remained unchanged.
"The fall of the Sensex is just a market correction and the movement in the capital market was quite orderly after the giddy rise for the last few days," Finance Minister P Chidambaram said.
The Supreme Court on Friday refused to accept in a sealed cover the Centre's suggestion on a proposed panel of experts for strengthening regulatory measures for stock markets in the wake of the recent Adani group shares crash triggered by Hindenburg Research's fraud allegations.
George Soros, who is in the eye of the storm over his remarks against Prime Minister Narendra Modi on the Adani issue, is an Hungarian-born American financier, philanthropist, and activist whose success as an investor made him one of the wealthiest men in the world. He is also known as a powerful and influential supporter of liberal social causes. In a speech at the Munich Security Conference on Thursday, the billionaire philanthropist said he believes the turmoil at Gautam Adani's business empire may weaken Prime Minister Narendra Modi's hold on the government, a statement which was strongly contested by the BJP as an attack on Indian democracy.
Market regulator Sebi has begun initial probe into the 'flash crash' of NSE index Nifty, which fell by nearly 900 points this morning, halting the trade on the exchange for about 15 minutes.
The Supreme Court on Wednesday agreed to hear on February 17 a fresh plea of a Congress leader seeking investigation under the supervision of a sitting apex court judge against the Adani group of companies in light of the allegations made by the US-based Hindenburg Research.
'If the epidemic is sharply contained in a month or two, we have a huge buying opportunity. 'If not, we are staring at a serious economic crisis, the contours of which we are totally unaware of,' warns Debashis Basu.
Heightened volatility and lacklustre returns continue to make a dent in retail participation in the equities cash market segment. The percentage of retail participation in the average daily turnover in the National Stock Exchange's (NSE's) cash segment has come down to 40.8 per cent in February 2023, from 52 per cent a year ago. At the peak, retail investors accounted for nearly two-thirds of cash market volumes in July 2020.
Other major laggards were IndusInd Bank, SBI, Bharti Airtel, ONGC, Tata Steel and Reliance Industries -- falling as much as 6.30 per cent.
The meeting lasted for nearly two hours, sources said.
'Rhetoric and chest-thumping are running high on India's recent growth record.'
'But will the giant waves developing elsewhere allow us to sail smoothly into fair winds?' asks Debashis Basu.
India is likely to see over 100 mature, large-scale profitable or on the path to profitability startups in the next five years, of which 80 have the potential to go for public listing, market research and consultancy firm Redseer said on Tuesday. Redseer Strategy Consultants, in a report on IPOs, said 20 of the mature startups have gone public so far. "India may see over 100 matured, large-scale profitable/path-to-profitability start-ups in the next five years.
The Supreme Court on Monday refused to take on record the suggestion of one of the petitioners and a report published by Forbes in a batch of PILs on the recent Adani group shares crash triggered by Hindenburg Research's fraud allegations.
Investing in the stock market is an art that you need to learn.
The problem is with the broking model and what brokers are allowed to do, notes Debashis Basu.
More than a dozen entities, both domestic and foreign, had come under the regulatory glare over alleged short-selling before and after the publication of the Hindenburg research report against Adani Group, two people familiar with the development said. The Securities and Exchange Board of India (Sebi), which is examining the rise in stock values of Adani Group in the past few years, is also scrutinising the trade data and trade pattern of these entities allegedly involved in short-selling and made significant profit. Enquiries in the trade pattern of these entities reflected a profit of over Rs 30,000 crore, pre- and post-Hindenburg saga, said one of the two people.
The crucial hearing on the PILs by a bench headed by Chief Justice D Y Chandrachud assumes significance in the wake of recent developments in which the Centre agreed to the apex court's proposal to set up a committee, likely to be headed by a former Supreme Court judge, to look into the regulatory regimes.
China's malfunctioning stock markets remained semi-frozen.
In global financial markets, the signals have changed from green to red. But rather than a simple traffic jam, a full-scale credit crash may be ahead.
In a big relief to Hindustan Aeronautics Limited, pilot error was found to have caused the crash of the India-made Advance Light Helicopter 'Dhruv' in Ecuador in October, a probe conducted in the United States and India into the mishap has revealed. The crash, during a military parade on October 28 in the South American country, injuring two pilots, was considered a major setback to India's efforts to market its indigenous helicopters overseas.
The price per kilogram of onion came down to Rs 2 to Rs 4, which angered the growers, who had stopped the auction at the APMC last week for a day.
Sensex crashed more than 1,000 points in opening trade. Asian stocks plunged too on Friday.
The index widened its loss towards the fag-end on emergence of intense selling in heavyweights like ITC, RIL and ICICI Bank. In percentage terms, however, Sun Pharma was the biggest loser with 9.39 per cent drop. Intra-day, the pharma major's shares tanked over 20 per cent.
'Returns can be very variable in equity markets.' 'That is why I tell small investors don't put 100 per cent of your money in equities, even if you are young.'
Even before the Wall Street the world's stock market hub in New York - opened on the 20th anniversary of the original Black Monday today, the domestic stock market's benchmark Sensex plunged over 438 points.
Asia has opened largely in the green ahead of a raft of Chinese data due during the day.
The Supreme Court on Friday said there should be a robust mechanism to ensure that the interests of Indian investors are protected in the stock market and sought views of the Centre and market regulator SEBI on PILs alleging exploitation of innocent investors and "artificial crashing" of the Adani group's stock value.
Macroeconomic factors under control, says Rajan
Officials said Sebi is closely in touch with RBI on the market developments.
A day after Dalal Street witnessed its bloodiest battering, NSE chief Chitra Ramkrishna on Tuesday said there is no need for panic as in an inter-connected world, global developments are bound to have an impact on all markets.
The stock market nearly made up for the 1,744 points it tanked on Wednesday after the government and regulator SEBI reassured investors there was no move to ban Participatory Notes (PNs) but only curb funds inflow.
Commodity markets are attracting large non-traditional investors across the globe.
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