<p>The meltdown in stock markets has wiped off more than Rs 2 lakh crore of investor wealth in just two days.<br /><br />Concerns over euro-zone debt troubles and their impact on banks, weak economic data in the US and other parts of the world and reports that America and Europe were dangerously close to recession battered investor sentiment globally.<br /><br />This scenario, coupled with high inflation and rising interest rates back home, hit Indian equities hard. Barring realty, which had been beaten down recently, all other 12 sectoral indices ended down between 4.41 per cent and 0.39 per cent.<br /><br />The BSEE 30-share index, Sensex, resumed lower and remained in the negative terrain throughout the day and closed at 16,141.67, down 328.12 points or 1.99 per cent, over its 371 points or 2.20 per cent loss yesterday. It logged a low of 15,987.77 — level not seen since May 25, 2010 when it had touched 15,960.15. Similarly, the NSE 50-issue Nifty slumped 98.50 points or 1.99 per cent to 4,845.65. It registered a low of 4,796.10 during intra-day trade. <br /><br />“Worsening global cues have spoilt investor sentiment. Rate hike fears have also rattled investors. In the near-term, global cues will dictate the market trend. However, one can see some technical bounce back after such huge fall,” said Geojit BNP Paribas Research Head Alex Mathews.<br /><br />Back home, FIIs remained net sellers and pulled out Rs 488.67 crore yesterday as per provisional data. Between August 12 and 17, in three sessions, they have withdrawn over Rs 1,000 crore.<br /><br />In all, 21 of 30 index-scrips closed with losses, while others ended with gains. Among sectoral indices and investment segments such as BSE-Midcap, Smallcap, Metals, Oil & Gas, PSU, Power, Bankex, Capital Goods, IT, BSE-200, BSE-200, BSE-500, Dollex-30, Dollex-100, Dollex-200, registered new 52-week lows during the intra-day trade. The total market breadth at BSE remained negative as 2,083 stocks ended in the red, while 773 finished in the green. The total turnover rose to Rs 2,763.78 crore from Rs 2,241.64 crore.</p>.<p>Morgan Stanley lowers India GDP <br /><br />New Delhi, pti: Investment banking major Morgan Stanley has revised downwards its India’s economic growth forecast for 2012 to 7.4 per cent. The global brokerage firm has also reduced its year-end target for the Bombay Stock Exchange benchmark Sensex by 15 per cent to 18,850. Morgan Stanley reduced its forecast for India’s gross domestic product growth for 2012 to 7.4 per cent from 7.8 per cent amid high inflation and weak global capital markets environment.<br /><br />Its new Sensex target for December 2011 is down 15 per cent to 18,850 points and the December 2012 target is 22,750.<br /><br />“Reflexivity is at work – lower share prices are affecting growth and vice versa,” Morgan Stanley said .<br /><br />“Earnings have support from decade-low gross margins and strong balance sheets, but face headwinds from fragile global growth. We think broad-market earnings growth may have troughed,” Morgan Stanley added.<br /><br />According to the report, the main factors that could adversely impact the markets include oil prices, inflation, high rates, slowing growth and alleged corruption scandals.<br /><br />“During the 2008 crisis, Indian earnings outperformed, but equities fell due to a large <br />outflow of capital... Massive global stimulus or a breakdown in capital markets will hurt India on a relative basis a la 2008,” the report said. </p>
<p>The meltdown in stock markets has wiped off more than Rs 2 lakh crore of investor wealth in just two days.<br /><br />Concerns over euro-zone debt troubles and their impact on banks, weak economic data in the US and other parts of the world and reports that America and Europe were dangerously close to recession battered investor sentiment globally.<br /><br />This scenario, coupled with high inflation and rising interest rates back home, hit Indian equities hard. Barring realty, which had been beaten down recently, all other 12 sectoral indices ended down between 4.41 per cent and 0.39 per cent.<br /><br />The BSEE 30-share index, Sensex, resumed lower and remained in the negative terrain throughout the day and closed at 16,141.67, down 328.12 points or 1.99 per cent, over its 371 points or 2.20 per cent loss yesterday. It logged a low of 15,987.77 — level not seen since May 25, 2010 when it had touched 15,960.15. Similarly, the NSE 50-issue Nifty slumped 98.50 points or 1.99 per cent to 4,845.65. It registered a low of 4,796.10 during intra-day trade. <br /><br />“Worsening global cues have spoilt investor sentiment. Rate hike fears have also rattled investors. In the near-term, global cues will dictate the market trend. However, one can see some technical bounce back after such huge fall,” said Geojit BNP Paribas Research Head Alex Mathews.<br /><br />Back home, FIIs remained net sellers and pulled out Rs 488.67 crore yesterday as per provisional data. Between August 12 and 17, in three sessions, they have withdrawn over Rs 1,000 crore.<br /><br />In all, 21 of 30 index-scrips closed with losses, while others ended with gains. Among sectoral indices and investment segments such as BSE-Midcap, Smallcap, Metals, Oil & Gas, PSU, Power, Bankex, Capital Goods, IT, BSE-200, BSE-200, BSE-500, Dollex-30, Dollex-100, Dollex-200, registered new 52-week lows during the intra-day trade. The total market breadth at BSE remained negative as 2,083 stocks ended in the red, while 773 finished in the green. The total turnover rose to Rs 2,763.78 crore from Rs 2,241.64 crore.</p>.<p>Morgan Stanley lowers India GDP <br /><br />New Delhi, pti: Investment banking major Morgan Stanley has revised downwards its India’s economic growth forecast for 2012 to 7.4 per cent. The global brokerage firm has also reduced its year-end target for the Bombay Stock Exchange benchmark Sensex by 15 per cent to 18,850. Morgan Stanley reduced its forecast for India’s gross domestic product growth for 2012 to 7.4 per cent from 7.8 per cent amid high inflation and weak global capital markets environment.<br /><br />Its new Sensex target for December 2011 is down 15 per cent to 18,850 points and the December 2012 target is 22,750.<br /><br />“Reflexivity is at work – lower share prices are affecting growth and vice versa,” Morgan Stanley said .<br /><br />“Earnings have support from decade-low gross margins and strong balance sheets, but face headwinds from fragile global growth. We think broad-market earnings growth may have troughed,” Morgan Stanley added.<br /><br />According to the report, the main factors that could adversely impact the markets include oil prices, inflation, high rates, slowing growth and alleged corruption scandals.<br /><br />“During the 2008 crisis, Indian earnings outperformed, but equities fell due to a large <br />outflow of capital... Massive global stimulus or a breakdown in capital markets will hurt India on a relative basis a la 2008,” the report said. </p>
