Indian Stock Markets Witness Sell-Off; UN Cuts GDP Growth Forecast; US Economy Expands
On Friday, the Indian stock markets witnessed a massive sell-off, with the BSE Sensex tanking 874.16 points or 1.45 per cent, its biggest single day slide in more than a month, to settle at 59,330.90. The broader NSE Nifty fell 287.60 points or 1.61 percent to close at 17,604.35.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday, offloading shares worth Rs 760.51 crore, according to exchange data. FIIs have been on a selling spree this month, taking the total outflow in equities to Rs 16,766 crore so far in January, as per NSDL data.
Due to the influence of restrictive monetary policy and lack of international demand, the United Nations has decreased its outlook for India’s GDP growth in 2023 to 5.8%.
In the fourth quarter of 2018, the US economy grew at an annual rate of 2.9 percent, surpassing expectations. It appears that the United States Federal Reserve might maintain its hawkish attitude for an extended length of time.
At the start of trading, the 30-share BSE index plummeted 578.19 points to 59,626.87. For the third day in a row, stocks of banks have gone down. Both Bank of Baroda and State Bank of India experienced major falls, with losses of at least 5% each. Meanwhile, the Rupee closed at 81.72 versus the US dollar.
Among the major laggards in the Sensex pack were ICICI Bank, HDFC, Axis Bank, State Bank of India, Reliance Industries, Kotak Mahindra Bank and HDFC Bank. Tata Motors, which returned to profitability in the third quarter of FY23, rose the most by 6.34 per cent.
The Adani group’s stocks dropped drastically, reaching a low of 20 percent, after Hindenburg Research, an American investment research organization, made damning claims.
In other parts of Asia, stock markets in Seoul, Tokyo, and Shanghai were performing positively, whereas Hong Kong was slightly lower.
If Street forecasts are not fulfilled, the market may experience a decline. Attention will be paid to the fiscal deficit figure for FY24. Morgan Stanley, an international brokerage firm, anticipates that the fiscal deficit in FY24 will amount to 5.9% of GDP, compared to 6.4% in FY23.
0. “Opening Bell: Indices open lower; Sensex falls 237 points, Nifty around 17800” Free Press Journal, 27 Jan. 2023, https://www.freepressjournal.in/business/opening-bell-indices-open-lower-sensex-falls-237-points-nifty-around-17800
1. “Sensex, Nifty tank 1% on selling in financial, oil, IT shares” BusinessLine, 25 Jan. 2023, https://www.thehindubusinessline.com/markets/sensex-nifty-tank-1-on-selling-in-financial-oil-it-shares/article66432061.ece
2. “Sensex Crashes Over 1,000pts, Rs 8.1L cr Investor Wealth Lost; Why is Market Falling Today?” News18, 27 Jan. 2023, https://www.news18.com/business/markets/sensex-crashes-over-1000pts-rs-8-1l-cr-investor-wealth-lost-why-is-market-falling-today-6928819.html
3. “Bloodbath on D-Street; Hindenburg report on Adani sinks markets” Rediff.com, 27 Jan. 2023, https://www.rediff.com/business/report/bloodbath-on-d-street-hindenburg-report-sinks-markets/20230127.htm
4. “Markets extend losses, Sensex falls below 59,800 in morning trade” Rising Kashmir, 27 Jan. 2023, http://risingkashmir.com/markets-extend-losses-sensex-falls-below-59800-in-morning-trade
5. “Adani Contagion Fear Hits India Bank Stocks, Major Life Insurer” Bloomberg, 27 Jan. 2023, https://www.bloomberg.com/news/articles/2023-01-27/adani-contagion-fear-hits-india-bank-stocks-major-life-insurer
6. “Business News | Erasing Early Gains, Indian Stocks Close Largely Steady” LatestLY, 24 Jan. 2023, https://www.latestly.com/agency-news/business-news-erasing-early-gains-indian-stocks-close-largely-steady-4752427.html
7. “Nifty slips below 18050, Sensex sheds 200 pts in early trade on Wednesday Jan 25; Tata Motors, Maruti shares rise” The Financial Express, 25 Jan. 2023, https://www.financialexpress.com/market/nifty-slips-below-18050-sensex-sheds-200-pts-in-early-trade-on-wednesday-jan-25-tata-motors-maruti-shares-rise/2959508