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Indian markets feel the US slowdown heat
Safe haven myth busted as BSE joins other Asian markets in a free fall; investors lose Rs6.64 trillion
Mumbai: India’s standing as a global safe haven, touted all through the second half of 2007 when the country’s stock markets boomed even as those in most Western countries went bust in the wake of the credit crisis in the US, took a beating Monday.
It was a beating that prompted Prime Minister Manmohan Singh to say that the “orderly growth of the capital market is a priority” for his government, and the government to issue a release asking investors not to panic.
On Monday, investors rushed to sell stocks, pulling down Sensex, the benchmark index of the Bombay Stock Exchange, by 1,408.35 points or 7.41%, its largest single-day fall in absolute terms.
Global investors’ cynicism on the effectiveness of the fiscal package announced by US President George W. Bush last week to avert recession in the world’s largest economy pushed the Sensex down 2,062 points before it recovered 600 points even as some domestic investors such as insurance behemoth Life Insurance Corp. of India bought stocks.
BIGGEST FALL (Graphic)
HOW THEY COMPARE (Graphic)
The fall lopped off around Rs6.64 trillion of the Bombay Stock Exchange’s market capitalization. The Sensex has lost 15.4% in six sessions since last Monday.
And the fall may continue for the time being as JPMorgan Securities (Asia Pacific) Ltd, an arm of JPMorgan Chase Bank NA, downgraded India in an Asia strategy report by chief equity strategist Adrian Mowat on Monday morning before trading started in Mumbai.
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Safe haven myth busted as BSE joins other Asian markets in a free fall; investors lose Rs6.64 trillion
Mumbai: India’s standing as a global safe haven, touted all through the second half of 2007 when the country’s stock markets boomed even as those in most Western countries went bust in the wake of the credit crisis in the US, took a beating Monday.
It was a beating that prompted Prime Minister Manmohan Singh to say that the “orderly growth of the capital market is a priority” for his government, and the government to issue a release asking investors not to panic.
On Monday, investors rushed to sell stocks, pulling down Sensex, the benchmark index of the Bombay Stock Exchange, by 1,408.35 points or 7.41%, its largest single-day fall in absolute terms.
Global investors’ cynicism on the effectiveness of the fiscal package announced by US President George W. Bush last week to avert recession in the world’s largest economy pushed the Sensex down 2,062 points before it recovered 600 points even as some domestic investors such as insurance behemoth Life Insurance Corp. of India bought stocks.
BIGGEST FALL (Graphic)
HOW THEY COMPARE (Graphic)
The fall lopped off around Rs6.64 trillion of the Bombay Stock Exchange’s market capitalization. The Sensex has lost 15.4% in six sessions since last Monday.
And the fall may continue for the time being as JPMorgan Securities (Asia Pacific) Ltd, an arm of JPMorgan Chase Bank NA, downgraded India in an Asia strategy report by chief equity strategist Adrian Mowat on Monday morning before trading started in Mumbai.
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