Friday, December 21, 2018

What happened to the Santa rally? Sensex tanks 350 points - economic news of india - world economic news - economics news for students - indian economy news

What happened to the Santa rally? Sensex tanks 350 points
Equity benchmark Sensex tumbled over 400 points after opening on a flat note on Friday. In the sudden selloff, the 30-pack index declined and hit an intraday low of 36,027 around 10.30 am against the previous close of 36,431. NSE’s Nifty slipped 114 points, or 1.04 per cent, to 10,837. The market appeared to be witnessing profit booking. Frontline stocks like Infosys, Indian Oil Corporation, TCS, HDFC, and ICICI Bank shed weight after rallying over the past few sessions and that offset gains in HDFC Bank, Mahindra & Mahindra, Bharti Airtel, ITC and Bajaj Finance in the broader index. India volatility index, which had been falling consistently over the past week or so, witnessed a sudden jump of over 9 per cent in morning session to rule at 15.6. Global worries appeared to have made investors nervous going into a long week. Nifty’s wave pattern suggests, it has completed a five wave triangular corrective pattern and a five wave down trend may have started, unless the index breaks above the December 19 high of 10,985 points. A close below 10,831 points, the 23.60 per cent Fibonacci retracement level of the bounce from December 11 low to December 19 high (wave E),though, may lead to a fall up to 10,736, the 38.2 per cent retracement level, according to Reuters.Meanwhile, other technical indicators are still positive like the 50-day exponential moving average(EMA) is above the longer term 200-day EMA and MACD is positive and above its signal line.The rupee, which had recorded solid gains over the past two days, weakened to 70.05 per dollar in morning session from its opening level of 69.72. While US stocks again fell in overnight trade as further hikes in US borrowing costs inflamed investor unease over the economic outlook, Asian stocks saw a battering this morning on the US growth worries and a threat of a US government shutdown . 67189643 Investors also turned nervous amid signs of an escalation in bilateral tensions between the US and China after the Trump administration put pressure on Beijing, unsealing criminal charges against two Chinese citizens allegedly tied to a state-sponsored campaign to steal sensitive information from businesses and several US government agencies, including the Navy.G Chokkalingam, Founder, Equinomics Research and Advisory said, “Subdued global cues mainly dragged the market in morning trade. I will not be surprised if we may see some recovery during the day as crude is trading below $55 per barrel.” Elsewhere in Asia, Singapore, Hong Kong, Taiwan, South Korea, Indonesia, and Shanghai were also trading in the red. Nikkei 225 was down 330 points or 1.62 per cent at 20,062, Straits Times slipped 11.88 points or 1.15 per cent to 3,042.98, Shanghai Composite lost 27.89 points or 1.11 per cent to 2,508 and Hang Seng dipped 59.47 points or 0.23 per cent to 25,566. KOSPI too was trading 7 points or 0.37 per cent lower at 2,052.
Source: ET