Likewise, Chinese stocks registered a dip on Monday, with the benchmark Shanghai Composite Index down 3.83 percent to open at 3,373.48 points.
As a bloodbath hit the stock market, the total investor wealth crashed below the Rs 100 lakh crore mark today while wiping out more than Rs two lakh crore worth valuation within minutes after the day’s trading began.
As of June 2015, the government has 68.57 percent stake in company. India faces multiple challenges emanating from global developments: Finance Minister Arun Jaitley. While pondering over the most likely course for the markets, participants should take note of the factors which have led markets to this undesirable state.
Jaitely emphasizing that macroeconomic indicators like inflation, forex reserve, capital investment in infrastructure and revenue collection are all positive, stated that if an economy exists on its own solid foundation and its own fundamentals are strong, then it is not a very challenging task’ to withstand these transient trends. The government and RBI are watching situation closely’. If the rupee continues to fall, prices of imported chocolates, liquors, cheese and Kiwi fruits will go up soon.
Prices of copper, seen as a benchmark for industrial demand, were around the $5,000 a tonne on Monday morning, at levels similar during the peak crisis months of 2008-2009, and China’s iron ore index, despite a recovery recently also remains near record lows, trading around $55 a tonne, Reuters reported. He added that we are expecting a better show in agriculture this year compared to last year.
Mumbai- Sensex at the BSE had plummeted a huge 1,077 points, to 26,289 in afternoon trade, a short while ago. The Nifty breached 7900 for the first time since October 2014, down 473.90 points or 5.71 percent to 7826.05.
The BSE Midcap stepped Small-Cap and 4 percent dropped 4.8 percent. About 275 shares have advanced, 2409 shares declined, and 45 shares are unchanged on the Bombay Stock Exchange. Vedanta and PNB were down 8 per cent each while ONGC, Cairn and Yes Bank shed 7.3-7.8 per cent in intra-day trade.
The fall in rupee intensified further with the currency crossing past 66 to hit 66.49 against the dollar, its fresh two-year low.