In the midst of the Corona crisis, the Central Reserve Bank of America has released estimates about the economy of its country. Concerns about the US economy have been expressed in these estimates, while there has been talk of taking a long time to improve unemployment and GDP figures. After this estimate of the US Fed, there is an atmosphere of panic in the US stock market. Its effect is also visible on the Indian stock market.
The indexes extended their losses after India’s Supreme Court asked telecom operators to file replies on a roadmap for payment of government dues, without providing any relief.
Banking stocks came under pressure following the hearing as many banks have large exposure to the telecom sector.
Condition of the Indian stock market
At the beginning of the last trading day of the week, there was a big fall in the Indian stock market. The Sensex was trading below 33 thousand, down by 900 points, while the Nifty was down more than 250 points to 9 thousand 600. During this time, all 30 stocks of BSE index were on the red mark. That is, all the shares have been sold. Earlier, on Thursday, the Sensex closed at 33,538.37 points, a loss of 708.68 points or 2.07 percent. If you talk about the Nifty, it fell 214.15 points or 2.12 percent to 9,902 points below 10,000 points.
“The markets opened with a gap down and have made a low of 9,545 after which it has bounced. What needs to be seen is if the level of 9,640 is breached again. If that happens, we should witness more downside pressure which could take the Nifty down to 9,450. For any upside to get activated, we need to cross 9,850,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
“Global scenario is overall weak … The second wave of the infection is hitting the market sentiments and economies as well,” said Rahul Sharma, head of research, Equity99 Advisors in Mumbai.
HDFC Bank, ICICI Bank and Kotak Mahindra Bank were the top drags, falling between 2.3% and 3.3%. The country’s top lender State Bank of India ended down 5.62%.
IndusInd Bank Ltd was the sole gainer on the Bank Nifty, rising 4.7%.
Shares of telecom operator Bharti Airtel fell 2.7%, while Vodafone Idea tumbled 14.75%.
Condition of the US stock market
The US stock market fell sharply in Thursday’s trading. The Dow Zone fell 1,861.82 points or 6.90 per cent to 25,128.17 points at the end of trading. Let us know that the US central bank Fed Reserve said that in 2020 the growth of the US economy will be compressed by 6.5 percent and the unemployment rate will be 9.3 percent by the end of the year. With this, the Federal Reserve did not change the interest rates.
Expectation from GST Council meeting
Recovery can be seen in the Indian market after the GST Council meeting to be held at noon time. The Goods and Services Tax (GST) Council is going to meet on Friday. The effect of Kovid-19 on tax revenue is expected to be discussed in this meeting. Apart from this, some other big decisions can be taken.