As stock market tumbles, SENSEX jokes bullish on Twitter

Gladys Abbott

February 7, 2018

Benchmarks BSE Sensex and NSE Nifty 50 fell for a sixth straight session on Tuesday in line with broader Asia following a US market rout.

Nifty 50 fell 168.20 points or 1.58 percent to 10,498.30.

Some 25 money managers and heads of research at brokerage houses polled by Economic Times in a survey said the shadow of long-term capital gains (LTCG) tax and concerns over a wider fiscal deficit are likely to loom over market sentiment for some more time.

At 9:44 am: The markets recovered from the opening lows but continued to trade sharply lower.

BSE Sensex was down 618.46 points or 1.78 percent at 34,138.70.

On Monday, the Dow Jones Industrial Average fell almost 1,600 points during the session, its biggest intraday decline in history, on fears quickening inflation may lead to higher rates by the US Federal Reserve. The BSE Sensex was trading at 33633, down by 1,123 points. "There was only minimal disruption on Day 1", said Finance Secretary Hasmukh Adhia in a tweet.

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"What happened on 2nd Feb & 5th Feb was mainly because of global shakeup".

The government has dismissed any link between the bloodbath in the Indian strock markets and the Budget, claiming that the development is linked to sell-off in world stocks.

It also added, "The President's tax cuts and regulatory reforms will further enhance the U.S. economy and continue to increase prosperity".

The NSE Nifty index was trading 334 points down at 10,333, while the BSE Sensex was 1099 points down at 33,659 around 10:10 am (IST). It hit a almost three-month low of $6,000 (Rs. 3.8L).

Commenting on the market crash, Finance and Revenue Secretary Hasmukh Adhia said that the domestic market was mimicking weakness in global markets and it can not be attributed to LTCG tax levied in the Budget.

United States stocks saw their biggest one-day fall in six years on Monday, as investor profit taking brought the market back down from record highs seen in late January, after benchmark bond yields rose to a four year high last week.