Indian markets fell sharply and then recovered on buying at lower levels. Trends show Congress ahead in Rajasthan and Chhattisgarh while both the parties are locked in a tight race in Madhya Pradesh. The abrupt resignation of RBI governor Urjit Patel, just a day before the announcement of state election results, hit the market sentiment before markets gained some poise . The Sensex fell as much as 533 points at day’s low, before gaining about 100 points in latest trade. On the global front, Asian markets were mixed after a wobbly session on the Wall Street. Adding to the global financial turmoil, the British pound slumped to a nearly 2-year low against the US dollar after the country abruptly postponed a parliamentary vote on Brexit agreement. The Sensex had fallen over 700 points on Monday.
Here are 10 updates from stock markets:
1) The rupee also pared losses against the US dollar today after slumping close to 72.50 against the greenback. The rupee had closed at 71.32 against the US dollar on Monday. In recent trade, the rupee was trading at 71.80 a dollar.
2) Among the 30 Sensex stocks, just five traded in the green. Maruti Suzuki, RIL, HDFC, ICICI Bank and IndusInd Bank fell between 1.5% and 2.5%.
3) Apart from domestic factors like state election results, Kotak Institutional Equities said that oil prices and China-US trade issues will act as overhangs for Indian markets.
4) While not commenting directly on Patel’s exit, Moody’s Investors Service said on Monday any signs the government was attempting to curtail the RBI’s independence would be a credit negative.
5) RBI governor Urjit Patel abruptly resigned on Monday, citing “personal reasons” for his decision to immediately step down. His resignation came days before an RBI board meeting.
6) Investors will want to know quickly who Patel’s replacement will be, and how that will affect the direction of financial and monetary policy, analysts said.
7) In global markets, overnight Wall Street ended a wild session higher, with Dow at session’s low down over 500 points. But analysts said overall sentiment was still fragile.
8) Most Asian markets are lower today. Adding to the concerns over US-China trade war and a global slowdown, the political turmoil deepened in the UK after Prime Minister Theresa May abruptly postponed a parliamentary vote on Brexit agreement. The British pound fell to 20-month lows against US dollar.
9) Recent economic data from major economies including China and Japan have added to worries about global economic activity.
10) In some sentiment booster for Indian markets, oil prices slid to around $60 a barrel, pressured by weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia. Crude prices are down around a third since early October amid a slump in financial markets and an emerging oil supply overhang.
(With Agency Inputs)