Overnight DOW plummeted 4.8% wiping all gains from 2018. As the Asian markets opened after it, including NSE and BSE, each one of them suffered heavy losses.
In absolute terms the losses at DOW were bigger than that of September 2008 as the index fell 1,175-point loss much more than the worst drop of 778 points at the beginning of the 2008 financial crisis. The HongKong based Hang Sang had its loos of 1,00o points at the trading started. Taiwan’s Taiex gauge is down 5.6%, and Nikkei 225 in Japan is now down as much as 7%.
The Indian markets that were already bleeding by Budgetary proposal for long term capital gains tax have been hit hard by this global meltdown further.
The Sensex at one stage stooped by 1,250 points to a low of 33,482.81, before recovering a bit. At the time of writing this articles both NIFTY and Sensex were down over 3.2% with Tata motors down more than 7.2% , Idea Cellular down 6.45% and Vedanta trading at losses well above 5%. Not a single share was trading in positive territory in either of the indices.
Experts seem to be divided as to how long the bloodbath will last. While some traders blamed speculative trade to have caused a balloon as the cause of the losses and that the bottom will take a while to be found others like Peter Garnry, told Bloomberg that he sees this a short term correction as the “U.S. 10-year Treasury yields haven’t reached a worrying level”.
Meanwhile it seems bears have returned in action and the way long term capital gains are being wiped out of Indian Markets, Mr Jaitley will really not have much to show for his all new taxation for the same in the next reporting cycle.
