Wednesday, February 21, 2024

Indian equities crash on US recession fears

A key Indian equities index was precariously close to the psychologically-important 10,000-point mark on Thursday noon on growing fears of a recession in the US, largely ignoring some key measures by India’s central bank to infuse additional liquidity.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened on a weak note at 10,284.90 points, over the previous close at 10,809.12 points, and soon fell further to 10,150.54 points.
About two hours into trading, the index made a small recovery and was ruling at 10,080.09 points, with a loss of 729.03 points, or 6.74 percent, over Tuesday’s close.
All the 13 sector-specific indices were in the red, while only one scrip out of 30 that go into the Sensex basket, managed to stay afloat. Tata Motors led the fall, down 13.25 percent, while Tata Consultancy followed next, down 12.55 percent. At the National Stock Exchange (NSE), the broader S&P CNX Nifty index was down 6.68 percent at 3,115.35 points.
The government and the central bank had Wednesday taken further steps to ease the flow of credit, with as much as Rs.650 billion ($15.5 billion) released to address the prevailing financial crunch, which was welcomed by industry.

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