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Tuesday, July 17, 2018

Market back to levels when Modi came to power

On May 26, 2014 when the Narendra Modi government took the oath of office, the Sensex closed at 24,716 and the markets are now just marginally above those levels.

By: ENS Economic Bureau | New Delhi | Updated: October 7, 2016 5:05:53 pm
senex, sensex crash, bse crash, sensex index, sensex market, nse india, modi government economy, narendra modi, indian economy, indian economy growth, indian economy growth rate, narendra modi economic policies, stock market, stock market news, tock market news, india news, modi news While the fall in the domestic market is in line with its Asian peers, it is important to note that the index has now fallen to a level that is very close to what it was when the Narendra Modi-led government came to power.

Reeling under global growth concerns, outflows by foreign institutional investors and fears of an interest rate hike by the US Federal Reserve, the BSE bellwether index fell below the 25,000 mark for the first time in 15 months to close at 24,893.8.

Since August 1, the Sensex has fallen 3,220 points or 11.5 per cent. The broader Nifty at the National Stock Exchange fell 96 points or 1.3 per cent to close at 7,558.8.

While the fall in the domestic market is in line with its Asian peers, it is important to note that the index has now fallen to a level that is very close to what it was when the Narendra Modi-led government came to power.

On May 26, 2014 when the new government took the oath of office, the Sensex closed at 24,716 and the markets are now just marginally above those levels.

Read: BSE Sensex cracks below 25,000-level; plunges 308 points to 15 months low

On Monday, the Shanghai Composite in China fell 2.5 per cent whereas the Hang Seng in Hong Kong fell 1.2 per cent.

Ever since the concerns over manufacturing growth in China have heightened, the foreign institutional investors have been busy taking their investments out of the emerging markets. While the net FII outflow in August stood at over Rs 17,000 crore from the Indian equities, in September it currently stands at Rs 4,215 crore.

The Rupee, which largely held its ground over the last week, came under pressure on Monday and was trading at 66.8 witnessing a fall of over 30 paisa against the Dollar. While the Nifty and Sensex fell 1.2 and 1.3 per cent, respectively on Monday, the fall in the mid cap and the small cap indices was higher as the two indices fell 2.2 and 1.8 per cent, respectively.

The biggest sectoral losers at BSE on Monday were healthcare and metal indices that fell 2.6 and 2.3 per cent respectively. Even the banking index fell 2.1 per cent.

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