Investors become poorer by Rs 9.51 lakh cr as markets crash
New Delhi (PTI): Investors' wealth eroded by Rs 9.51 lakh crore on Monday morning, following a crash in equity markets where the benchmark Sensex tanked over 2,400 points, mirroring a sharp plunge in global peers.
The 30-share BSE benchmark tanked 2,401.49 points to 78,580.46 in early trade.
Following the sharp decline in equities, the market capitalisation of BSE-listed firms dropped by Rs 9,51,771.37 crore to Rs 4,47,65,174.76 crore (USD 5.35 trillion) during the morning trade.
"The global market is reeling as bears enter with a cocktail of bad news. The fear of a reverse Yen carry trade, following an interest rate hike in Japan, was the initial catalyst. This was compounded by fears of a recession in the USA after extremely poor jobs data, which spooked market sentiment," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Indian equity markets are witnessing signs of the first meaningful correction in global markets after an extended bull run, he added.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading sharply lower.
Japan's benchmark Nikkei 225 stock index plunged as much as 8.1 per cent early Monday, extending sell-offs that shook world markets last week as worries flared over the state of the US economy.
The US markets ended significantly lower on Friday.
"The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in US job creation in July and the sharp rise in the US unemployment rate to 4.3 per cent.
"Geopolitical tensions in the Middle East also are a contributing factor," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
From the Sensex pack, Tata Motors, Maruti, Tata Steel, Infosys, Tech Mahindra and JSW Steel were the biggest laggards.
On the contrary, Hindustan Unilever, Sun Pharma, Nestle and Asian Paints were trading in the positive territory.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,310 crore on Friday, according to exchange data
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Bypoll results will decide the future of Congress in Karnataka: BJP leader Ashoka
Bengaluru (PTI): Leader of Opposition BJP in the Karnataka Assembly R Ashoka said the results of the bypolls in Davanagere South and Bagalkote assembly constituencies will decide the future of the ruling Congress in the state.
The bypolls were necessitated following the demise of sitting Congress MLAs Shamanur Shivashankarappa and H Y Meti, who represented Davanagere South and Bagalkote constituencies respectively.
The ruling Congress has fielded Shamanur Shivashankarappa’s grandson and Karnataka Minister S S Mallikarjun’s son Samarth Shamanur in Davanagere South and Umesh Meti in Bagalkote, who are locked in a direct contest with BJP candidates T Dasakariyappa and Veerabhadrayya Charantimath.
According to Ashoka, there is a contest between the poor and the rich in the upcoming bypolls, scheduled on April 9.
"The Congress will lose this election, and the future of the state will be decided. Since Chief Minister Siddaramaiah has said ‘Make the poor win’, the BJP has fielded poor candidates,” the BJP leader said in a press conference.
In Davanagere, the BJP has given a ticket to an ordinary person, whereas Congress has given tickets to powerful and influential people. In Bagalkote, there is a very good opinion about the BJP candidate, he claimed.
According to him, the Congress has given space to dynastic politics in both places. Therefore, the BJP has a strong chance of winning in both constituencies.
The LoP said if the Congress candidate wins in Davanagere, it is understood that Muslims will not get opportunities in the future, and therefore, Muslims are opposing the Congress party.
He also charged that Chief Minister Siddaramaiah, who talks about uniting backward classes, has not given a ticket to backward class candidates.
