Markets fall as traders are hostage to global gloom
Once upon a time, merchants were overwhelmed by concern for Mondial economy. They bought stocks and commodities in an effort to protect their wealth and limit the damage. In recent years, this concern has grown as anxiety levels have increased preposterously. With uncertainty reigning supreme, traders are forced to buy whatever they can in case it is worth something later.
And now the global gloom has reached a new level.
“One of the few stocks we own and have held onto is Tata Steel. It’s a company we don’t see struggling,” says Udayan Mukherjee, director at Inventure Growth Services. steel which he believes will benefit from infrastructure spending and increased urbanization.
“We are very careful with our money. We are looking to take profits as we believe the markets will rebound shortly,” says another institutional trader. Commenting on the fall which saw the Sensex slip below its opening level, he said: “The start of the session was not good for us but we managed to survive in the event of a few shocks. The Rupee was also weaker, which could add to a sense of panic among traders.
The market capitalization (or market value) of a publicly traded company is calculated by multiplying the price of its shares by the number of shares outstanding. The total market capitalization of listed companies in India was US$1. 51 trillion as of December 31, 2017, or about 85.4% of the size of the Indian economy.
Indices are performance measures for general stock markets and are often the benchmark for investment decisions. They are widely used in fund management, portfolio management, and other financial transactions to measure market performance by comparing one or more indexes to a price index. Indices were originally created to allow investors to compare stock prices between different companies based on various factors such as market capitalization.
The NSE 100 is an index of the top 100 companies listed on the National Stock Exchange of India, a stock exchange operator in India.
Currency trading is the financial trading of currencies to profit from fluctuations in their values. Apart from spot and forward contracts, other derivative products such as currency options, currency futures and currency swaps are available to investors. Foreign exchange is the exchange of one currency for another at a current or fixed exchange rate.
The foreign exchange market is a global decentralized or over-the-counter market for trading currencies. This market determines the exchange rate, which indicates the relative value of a particular currency. The main players in this market are the major international banks. Currencies are traded around the clock and are mostly tied to the movement of global funds rather than local demand and supply.
The National Stock Exchange index has been trading in a range between 11,700 and 11,500 over the past few weeks. While the index fell 6.93% in the last trading session, it had fallen around 8.76% since March 17, 2018. New Delhi: Benchmark BSE Sensex plunged on Wednesday by over 700 points to open 1,133 points in early trading with the broader Nifty50 index. scaling a minimum of 7813.52. The 30-stock index hit a high of 11,611.72 and touched an intraday low of 11,540.
To be included in the Nifty 50, a company must meet several conditions: The BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index) is a free-floating market-weighted stock index of 30 well-established and most liquid Indian companies. The Nifty 50 Index is the free-floating market-weighted stock index of India’s top 50 companies that have a combined market capitalization of approximately US$1.6 trillion.
The Nifty 50 index remained under pressure for the second day on Wednesday, with shares slipping further below their crucial support level at 7,900, with Nifty shedding another 163 points to close above 7,900 at 7,936 levels on Wednesday. .
A sell-off in global markets on Monday as investors spooked over the latest set of indicators pointing to a slowing global economy and the next lurking recession. Investors avoided riskier assets, with stocks plunging on Wall Street and Asian stocks falling to a four-month low. The emerging market equity index fell to its lowest level since September 2017.
An old adage that the market goes up when the sun shines in one country, while it goes down when it rains in another no longer seems to apply. Markets in all countries have been falling and they continue to fall. Some are down 5%, and others even 7%. The only thing you can be sure of is that it will go down, especially if you listen to most analysts. Currencies fell almost as fast as stocks.
-Dow drops more than 700 points for the second time since September 23
-Markets fall on trade concerns overnight, Nikkei fell 153.29 points to 21,432.06. Global stocks tumble as Trump threatens to hike tariffs, the yuan tumbles sharply and investors grow increasingly worried about the strength of China’s economy. Japan’s Nikkei 225 fell 4.4%, the biggest drop since Sept. 23, after Donald Trump threatened to use more tariffs on Chinese imports. The yuan plunged to its lowest level in nearly a year, hitting 31.06 to the dollar for the first time since Nov. 1 last year.
-The Dow Jones had its worst day in two years on Monday, plunging 712 points and dropping below 24,000. The index hit a point Tuesday morning that marks a 2018 low, but it rallied to close at 24,164.85 points. Monday’s decline sent the Dow down 8% from its January peak, wiping out all of its gains for the year and officially putting it in correction territory. The S&P 500 and Nasdaq Composite also fell into a technical correction, down 10% from their record highs.
-Asian stocks fell after markets tumbled on Monday as investors grew increasingly worried about trade tensions and China’s slowdown. – The MSCI Asia Pacific index fell 0.8% to 3,103.18 points, its lowest level since July 2017. The Shanghai Composite index fell 2% to 3,150.52 points and is down 36% from its January highs.
-It was a particularly tough day for South Korea’s KOSPI index on Tuesday as it fell 4%, the biggest decline since October 2008. South Korea’s benchmark index closed higher historic low, while the Korean won fell to a seven-year low, continuing a string of record losses in recent weeks that have plagued the country’s stock market.
A senior Reserve Bank of India official said the country’s economy is unlikely to grow more than 7.5% in the current financial year and could slide back into a technical recession. The finance ministry also warned of a slowdown in GDP growth amid weakening global demand and heightened trade tensions. Private sector lender Axis Bank cut its GDP growth forecast for India this fiscal year to 6.8% from 7%.
Australia’s economy is set to be the worst performer in the developed world over the next two years as Donald Trump’s trade war takes its toll and China’s slowdown takes hold, economists say. We are a far cry from the glory days before the financial crisis when Australian Prime Minister John Howard called his economy “the lucky country”.