Indian markets join global selloff as US Fed indicates fewer rate cuts ahead; Sensex sinks below 80k
Mumbai, Dec 19: Equity benchmark Sensex on Thursday plunged about 965 points to crash below the 80,000 level due to heavy selling in global equities after the US Federal Reserve signalled fewer rate cuts next year.
Besides, deep losses in consumer durables, banking and IT stocks amid foreign fund outflows added to the gloom, analysts said.
Falling for the fourth day running, the 30-share BSE benchmark Sensex tanked 964.15 points or 1.20 per cent to settle at 79,218.05. During the day, the blue-chip index cracked 1,162.12 points or 1.44 per cent to 79,020.08.
As many as 2,315 stocks declined while 1,680 advanced and 100 remained unchanged on the BSE.
The NSE Nifty tumbled 247.15 points or 1.02 per cent to sink below the 24,000 mark at 23,951.70.
In the past four days, the BSE benchmark tanked 2,915.07 points or 3.54 per cent and the Nifty declined 816.6 points or 3.29 per cent.
"The Indian market saw a widespread decline following a global sell-off driven by the US Fed’s hawkish stance on interest rates. Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt.
"However, the BoJ's decision to keep its interest rate steady, which surprised economists, aided in reducing the selling pressure. Despite this, investor caution persisted amid ongoing FII selling, with a strategic shift towards defensive sectors like pharma as evidenced by their outperformance," Vinod Nair, Head of Research, Geojit Financial Services, said.
From the 30 blue-chip pack, Infosys, Bajaj Finserv, JSW Steel, Bajaj Finance, Asian Paints, ICICI Bank, Reliance Industries, Tata Consultancy Services, Infosys, Tata Motors and Mahindra & Mahindra were the biggest laggards.
On the other hand, Sun Pharma, Power Grid and Hindustan Unilever were the gainers.
"Markets were plundered tracking negative global cues as benchmark indices slipped below their psychological levels on broad-based selling after the US Fed's hawkish stance raised concerns over further rate cuts next year. Rising US bond yields have pushed global currencies, including the rupee to new lows, while renewed foreign fund outflows from domestic equities could prompt investors to turn risk averse," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The rupee dropped 14 paise and breached the crucial 85 level to close at an all-time low of 85.08 (provisional) against the US dollar on Thursday.
The BSE midcap gauge declined 0.30 per cent and smallcap index dipped 0.28 per cent.
Among sectoral indices, BSE Focused IT tanked 1.20 per cent, consumer durables (1.15 per cent), IT (1.13 per cent), capital goods (1.07 per cent), teck (1.05 per cent) and financial services (1.05 per cent).
BSE Healthcare emerged as the only gainer.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.
European markets were trading in the negative territory. Wall Street ended sharply lower on Wednesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,316.81 crore on Wednesday, according to exchange data.
Global oil benchmark Brent crude dipped 0.08 per cent to USD 73.33 a barrel.
The BSE benchmark Sensex tumbled 502.25 points or 0.62 per cent to settle at 80,182.20, taking its downtrend to the third day on Wednesday. The Nifty declined 137.15 points or 0.56 per cent to 24,198.85.
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CJI's advice to aspirant: Join the bar, become a lawyer, don't hanker for judicial services post
New Delhi (PTI): She came to the Supreme Court seeking a re-evaluation of her paper in the examination for joining judicial services as a magistrate. What she got instead was a rejection — and a candid confession by the Chief Justice that he too had wanted to join the judicial services in his youth but was advised by a senior judge to become a lawyer instead.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi on Friday dismissed a plea filed by Prerna Gupta, the judicial services aspirant.
As Gupta pressed her case, the CJI intervened and said, "Let me share my personal story and I hope you will go happily as we cannot allow your petition."
He recounted his time as a final-year law student in 1984 when he wanted to become a judicial officer. As per requirement, he cleared the written test and was set to appear for an interview.
Judicial services is one of the two routes to become a judge after initially joining as a magistrate in lower court and thereafter rising through the ranks to become judge in a high court and possibly the Supreme Court.
The other route is to join the Bar, which means becoming a lawyer, and after building a reputation be picked from the Bar to become a judge at a senior level.
By the time the CJI's exam results came out, he had started practising at the Punjab and Haryana High Court when he was called for the interview.
The senior-most judge on the interview panel happened to be a judge before whom he had recently argued two significant matters.
"One of the matters was Sunita Rani vs Baldev Raj, where he had allowed my appeal in a matrimonial case and set aside the decree of divorce granted by the District Judge on the ground of schizophrenia," he noted.
Before the interview could take place, the judge called the young Surya Kant to his chamber and asked, 'Do you want to become a judicial officer?'
"I said 'yes.' He immediately said, 'Get out from (my) the chamber.'"
The courtroom fell silent as the CJI Justice described his initial heartbreak.
“I came out trembling. All my dreams were shattered. I thought he had snubbed me and that my career was over,” the CJI said.
However, the story took another turn the following day and the judge summoned him again, this time offering a piece of advice that would change the trajectory of his life.
“He said, ‘If you want to become (a judge), you are welcome. But my advice is, don’t become a judicial officer. The Bar is waiting for you,’” Justice Surya Kant recalled.
The CJI said he decided to skip his interview and didn't even tell his parents at first, fearing their disappointment, and instead chose to dedicate himself to his practice as an advocate.
“Now tell me did I make a bad right or bad decision,” the CJI asked and the litigant lawyer left the court with a smile on her face despite her case being dismissed.
Encouraging the petitioner to look toward the future rather than dwelling on the re-evaluation of a single paper, Justice Surya Kant said, "The Bar has much to offer."
