Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
3-min read

Sensex Plummets 587 Points, Yes Bank the Biggest Loser as CEA Virtually Rules Out Stimulus Package

Tech Mahindra, TCS, HUL and HCL Tech were the only gainers, spurting up to 1.57 per cent.

PTI

Updated:August 22, 2019, 5:42 PM IST
facebookTwitterskypewhatsapp
Sensex Plummets 587 Points, Yes Bank the Biggest Loser as CEA Virtually Rules Out Stimulus Package
Representative image (Reuters)
Loading...

Mumbai: Equity markets closed deep in the red on Thursday after top government officials virtually ruled out a stimulus package for slowdown-hit sectors, triggering another round of selling in banking, auto and metal stocks.

A weakening rupee, which hit its lowest level in eight months, and lackluster global cues further weighed on investor sentiment, traders said.

The 30-share BSE Sensex sank 587.44 points, or 1.59 per cent, to finish at 36,472.93. The broader NSE Nifty slumped 177.35 points, or 1.62 per cent, to 10,741.35.

Both the key indices closed lower for the third straight session.

Chief Economic Adviser Krishnamurthy Subramanian on Thursday said using taxpayers' money to bail out companies going through a 'sunset' phase will create moral hazards and such a step is an anathema to the market economy.

Power Secretary Subhash Chandra Garg also said low-interest rates and availability of credit to the private sector are better tools than a fiscal stimulus.

The comments have dashed hopes of some sort of a stimulus package from the government to boost growth and revive flagging consumer sentiment, analysts said.

Yes Bank was the biggest laggard in the Sensex pack, plummeting 13.91 per cent, followed by Vedanta, Bajaj Finance and Tata Motors, which declined up to 7.76 per cent.

ONGC, SBI, Hero MotoCorp, ICICI Bank, Tata Steel, HDFC twins and RIL also closed with losses.

Tech Mahindra, TCS, HUL and HCL Tech were the only gainers, spurting up to 1.57 per cent.

"Benchmark indices continue to remain weak with the rupee hitting fresh lows and lack of news on the economic stimulus by the government... Investor sentiment was further dampened by a statement made by Chief Economic Advisor that Indian economy doesn't need fiscal stimulus to tackle slowdown.

"Besides policy uncertainty on the domestic front, weak global cues, foreign fund flow, currency and oil price movement would further determine the trend of the market," said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

Speaking at an event in Delhi, Subramanian stressed on the cyclical nature of a market economy.

"Since 1991 we are a market economy, and in a market economy, there are sectors which go on sunrise and then go through the sunset phase.

"If we basically expect the government to use taxpayers' money to intervene every time when there are some sunsets,' then I think you introduce possible moral hazards from 'too big to fail' and as well as the possibility of a situation where profits are private and losses are socialized which is basically an anathema to way the market economy functions," he said.

Speaking at the same event, Power Secretary Subhash Chandra Garg said reduction in interest rates and availability of credit to private sector are better tools than a fiscal stimulus.

Garg, who was Finance Secretary till last month, also said the first quarter GDP number are likely to be lower than the same period last fiscal.

Meanwhile, BSE realty index was the biggest sectoral loser, cracking 6.01 per cent, followed by metal, finance, oil and gas, bankex and energy.

IT index was the sole gainer, rising 0.30 per cent, buoyed by a weak rupee.

The broader BSE midcap and smallcap indices followed the benchmarks, closing up to 2.19 per cent lower.

Globally, markets were jittery ahead of comments from Federal Reserve Chair Jerome Powell at Jackson Hole, Wyoming, US.

Elsewhere in Asia, Shanghai Composite Index and Nikkei ended on a positive note, while Hang Seng and Kospi settled in the red.

Equities in Europe were trading lower in their respective early sessions.

The Indian rupee depreciated 33 paise to 71.88 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 0.65 per cent to USD 60.69 per barrel.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 1,996.25 -2.47
Axis Bank 640.45 -4.54
Maruti Suzuki 6,130.40 -4.40
Yes Bank 65.10 -2.91
Reliance 1,197.45 -1.10
Company Price Change %Gain
Maruti Suzuki 6,130.65 -4.39
Yes Bank 65.15 -2.91
HEG 1,245.55 -11.23
Graphite India 339.50 -8.72
Indiabulls Hsg 429.05 -1.41
Top Gainers
Company Price Change %Gain
GAIL 131.90 1.70
Titan Company 1,158.25 0.84
HUL 1,831.20 0.82
Asian Paints 1,530.90 0.63
Dr Reddys Labs 2,738.05 0.47
Company Price Change %Gain
HUL 1,830.95 0.84
Asian Paints 1,531.05 0.69
Infosys 831.05 0.44
Top Losers
Company Price Change %Gain
Hero Motocorp 2,568.95 -6.20
Tata Motors 122.00 -5.13
Axis Bank 640.45 -4.54
Tata Steel 344.95 -4.47
Maruti Suzuki 6,130.40 -4.40
Company Price Change %Gain
Hero Motocorp 2,570.05 -6.19
Tata Motors 121.95 -5.13
Tata Steel 344.45 -4.62
Axis Bank 640.20 -4.62
Maruti Suzuki 6,130.65 -4.39

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results