Tuesday, January 06, 2015

Sensex falls over 500 points; Nifty slips below 8250 as oil dips below $50/bbl
Photo: Piccadilly Financial Group Pty Ltd
[Editor: Now if the crude oil prices are falling why should Indian Markets tank so much, when its eonomy is more or less domestic driven? In fact the fall in Crude Oil prices could create miracles for the NDA government, as India cut down CAD. However, this sudden fall in the domestic share indices, again proves that, Stock Markets are more sentiment driven rather than based on Fundamentals and Sound Reasoning. Moreover, now if there are more visible signs of World Economy slowing down, then what is our learned RBI Governor and his counterpart, Dr.Urjit Patel (another snob) doing? The interest rates should be cut to boost the Indian economy immediately. In the short term it might give some jitters to the INR-USD ratio but in the medium term, Repo rate cut might work wonders. The Nifty is  now down 141.20 points while the mid-cap index is down 203.25. This shows that there is no much selling in the mid-cap index inspite of such a  huge fall in the Nifty]
NEW DELHI, 6 Jan, 2015: The S&P BSE Sensex plunged as much as 512 points in trade on Tuesday following Asian markets, which were trading lower as investors are starting to worry that the prolonged slump is signaling a weaker global economy. 

"That fear shook financial markets Monday as oil plunged again, dipping below $50 for the first time in more than five years. The drop prompted a big sell-off, not just among energy stocks, but across the entire stock market," AP reported. 

Tracking the momentum, the 50-share Nifty index also cracked over 100 points to slip below its crucial psychological level of 8250, weighed down by losses in auto, banks, capital goods and IT stocks. 

At 09:20 a.m.; the 30-share index was trading at 27,426.62, down 416 points or 1.49 per cent. It touched a high of 27698.93 and a low of 27,330.47 in trade today. 

The Nifty was at 8259 down 119 points or 1.4 per cent. It touched a high of 8327.85 and a low of 8229.35 in trade today.

The S&P BSE Midcap Index was down 1.3 per cent and BSE S&P Smallcap Index edged lower by 1.1 per cent. 

NTPC (up 0.2 per cent) and HUL (up 0.05 per cent) were among the major Sensex gainers. 

Tata Motors (down 3.3 per cent), Sesa Sterlite (down 2.1 per cent), ONGC (down 2.2 per cent), Tata Power (down 1.9 per cent) and Infosys (down 1.8 per cent) were the major index losers. 

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