Surge short-lived, Indian shares fall again after Monday mayhem

Mumbai, Aug 25 (IANS) After an initial surge, Indian share markets fell again on Tuesday, in line with global cues, a day after the mayhem in global financial markets and a crash in China spooked a key Mumbai index into shedding some 1,625 points, or nearly 6 percent.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 25,916.26 points, against the previous close at 25,741.56 points, and a few minutes into trading it was ruling at 26,091.71 points, with a gain of 349.15 points, or 1.36 percent.

But around 11:30 in the morning, the index was ruling at 25,408.95 points, with a loss of 332.61 points or 1.29 percent. Five out of the 30 shares that go into the Sensex basket, however, managed to buck the trend and were ruling higher than the previous close.

Overall, in the volatile session of Tuesday, out of 2,416 stocks that were being traded, 1,981 were quoting lower, 373 of them advanced, while 12 others were unchanged.

A similar trend played out at the the National Stock Exchange (NSE), where the broader 50-share CNX Nifty was initially ruling higher at 7,910.45 points, with a gain of 101.35 points, or 1.30 percent. But it soon fell to 7,707 points, with a loss of 102 points, or 1.31 percent.

Weak global cues and the shock from China where the markets crashed over fears that its economy was slowing faster than expected sent Indian indices and the rupee into a tailspin on Monday. The Sensex logged its steepest closing fall in point-terms. The rupee fell to a two-year low.

Key US indices also took a tumble of around 4 percent.

A day later, the investor sentiments continued to be grim globally. Tokyo’s Nikkei opened nearly 2 percent lower on Tuesday, and the bloodbath in China continued unabated. The Shanghai Composite index opened 6.2 percent lower.

1 Comment

  1. Nobody said a bad word when BSE surged by 5000 points in one morning on the day of BJP winning majority at the center last year. But now you see a 1000 points correction and all of a sudden it’s doom and gloom. Perhaps that 5000 gain last year was a hokum (cocky exuberance by the investors) to begin with and the current market is proving it.

    Anyways, BJP is paying the price for UPA’s sins now. Today’s economic blunders take years to bear fruits so Congress has successfully managed to hoodwink the public again. Forget everying, a small change in interest rates takes up to 2 years to fully take effect in the economy so talk about 10 years of incontinence under UPA. Modi will have a busy time cleaning up that mess. 2020 it will be Congress back again at the helm whether you like it or not and pappu will be on the chair.

    In the middle of all this what chafes my hide is that Congress is blaming BJP for current rupee woes when they are the reason for this mess and interestingly BJP lacks any economic knowledge to convince the public they are not at fault here. Congress is comparing Rupee rate to Advani’s age etc. But BJP should have acted responsibly here. For example, oil prices in India in the last 1 year declined because of the global supply glut. It had nothing to do with BJP being in power but Amit Shah (?) was quick to score political mileage out of it to say it was due to BJP government. This is where people/parties lose credibility. Be dignified and honest in your stance and people will respect you regardless of party affiliations or ideologies.

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