The crack in the equity markets is serious and portends a deeper correction ahead. The markets will almost certainly attempt to complete the interrupted up move next week, says Sonali Ranade
The rupee weakened against the dollar in late trades on Thursday tracking weakness in the equity markets.
Recent months been worse for investors in gold mining companies.
Joy Thomas stated that one large account -- HDIL -- was the sole reason for the present crisis that led to the regulatory action on Tuesday when Reserve Bank of India superseded its management and placed it under an administrator for the next six months.
'Industry observers are certain the next attempt will succeed even if they have to browbeat someone into buying as the government has put its might behind it,' predicts Anjuli Bhargava.
Markets end four-day losing streak led by shares of private banks, rebound in L&T and Tata Steel.
Markets ended over 1% lower, snapping a five-day winning streak, amid a sell-off in bank shares after the central bank late Tuesday imposed fresh restrictions on commercial banks' access to cash.
The official data on April-June GDP will be released on August 31.
The benchmark indices fell as Sebi cracked down on 331 suspected shell companies listed on exchanges.
The company shut its factory on June 3, which ironically was also World Bicycle Day. It laid off its 431 remaining employees, but the company insists they continue to be on its rolls and will be paid "lay-off wages" upon marking attendance daily.
Spot silver rose 0.3 per cent to $15.35 an ounce.
Bank of Baroda ended flat after sharp gains in the previous session.
India's forex reserves enough to cover imports for just 7 months.
The 30-share Sensex ended at 18,719 down 526 points or 2.74% and the 50-share Nifty ended at 5,656 down by 166 points or 2.86%.
India is emerging Asia's canary in the 'hot money' mine.
Investors sinking lump sum money in equities seem to have applied the brakes.
Among Sensex constituents, Vedanta fell 3.40 per cent, followed by SBI 3.17 per cent, Yes Bank 3.11 per cent, Axis Bank 1.68 per cent, ONGC 1.60 per cent, Power Grid 1.52 per cent and HDFC 1.48 per cent.
'The government has failed to understand the seriousness of the situation, and that's why they are underestimating the problem.' 'They think some tinkering here and there will fix the economy automatically.'
Many political detainees have been released but former chief ministers Farooq Abdullah, Omar Abdullah and Mehbooba Mufti, who were whisked into custody in the early hours of August 5, 2019, are still in preventive detention.
The Sensec ended marginally higher on favourable cues in domestic market.
The Bombay Stock Exchange benchmark Sensex has lost 478.60 points, or -2.80 per cent, to slip to 16,586.55 in afternoon trade on Thursday amid panic selling in markets worldwide following the US Federal Reserve's warning that the outlook for the world's largest economy is grim.
Liquidity issues post the crisis at DHFL, progress of monsoon, rupee trajectory at the domestic level and oil prices are some factors that will keep markets choppy, analysts say.
The recent round of sell-off is losing momentum and buying is again picking up due to firm marriage season demand.
Possible higher dividend, capital gains taxes weigh.
India is finally waking up to the fact that its credit drought might be here to stay.
Plunged as much as 60% in some cases, amid panic selling on speculations of sale of pledged shares.
The rupee resumed lower at 54.37 per dollar as against the last closing level of 54.07 at the Interbank Foreign Exchange Market.
The biggest losers in the Sensex pack were M&M, ONGC, Vedanta, Tata Steel, L&T, HDFC, NTPC and Axis Bank, falling up to 3.04 per cent.
With markets expected to remain volatile, promoters and lenders exposed to the industrials and materials space can face brunt of the price erosion of the pledged shares.
The primary market showed some signs of life in a busy day.
Still, it is not expected to gain much strength and will likely trade around Rs 63.00 to the US dollar by the end of April.
The broader NSE Nifty reclaimed the key 10,000-mark and touched a high of 10,143.50 before finally settling at 10,130.65
Market players said the sell-off was triggered by pessimism that the government may not be able to balance growth with macro-stability.
Macroeconomic factors under control, says Rajan
To discourage investors from quick sell-offs, fund houses have started raising exit loads - a penalty charged when investors redeem investments before a specified time.
While previously selling of the marketing business, possibly to another state-owned firm, was being considered, the government is now mulling on hiving off the pipelines into a separate entity and selling off a majority stake in it.
Gold prices fell due to persistent selling by stockists triggered by a heavy sell-off in global markets.
Fernandes wanted Coca-Cola Company to not just transfer 60 per cent of the shares of its Indian firm but also the formula for its concentrate to Indian shareholders.
