In the last 30 days, the domestic stock markets have cleared the wealth of Rs 15 lakh crore from the pocket of investors. Sales dominated the market in the first half of the year 2019. But after the budget was presented on July 5, foreign investors drew money from the market.
The disappointment of the budget did not spare even large-cap stocks considered safe. On Monday, the BSE Sensex dropped by 650 points and finally closed at 36,700. The index closed at 36,068 on December 31. After the presentation of the budget, the Sensex has fallen by 9 percent.
During this time, the total market cap of BSE became clear by about 10 percent. On July 5, the market capitalization of all listed companies on BSE was Rs 153.58 lakh crore, which slipped to Rs 138.41 lakh crore on August 5. The market cap of 15 lakh crores became clear in this one month.
On Monday, on the basis of market cap, the shares of Reliance Industries, India's second-largest company, dipped 3.5%. Global brokerage firm Credis Suisse reduced the company's ratings by 26 percent.
Recently, other global brokerage firm UBS advised selling Maruti Suzuki, while CLSA also offered the same advice for Mahindra & Mahindra. Tata Motors, UPL, India Oil, Axis Bank, Vedanta and Tech Mahindra are some of the companies that missed the earnings estimates in the June quarter.
Companies like Yes Bank and Tata Motors have also reported a big drop in ratings by many agencies. Analysts believe that there is a disappointment in the market due to failure to meet earnings estimates. The government increased the tax on the very rich in the budget, after which foreign investors continued to sell.
After a long time on Monday, the rupee slipped across the 70 levels against the dollar. The stress of business wars around the world is dominating. With this beating, foreign investors sold shares worth Rs 15,000 crore in the Indian market. Foreign investors are known for their investments in benchmark stocks.
Shares of Indiabulls Housing Finance have dipped 36% in the past one month. Coal India, ONGC and Vedanta have also broken 14 to 18 per cent shares. Tata Motors (22.67 per cent down), Titan (19 per cent down) and Tata Steel (18 per cent down) have also seen a major fall in Tata group shares.
Market experts said, "There was no major reform or any major relief in the general budget, on the contrary, the rate of income tax was increased on the rich investors, along with suggestions of increasing the share of public shareholders in companies. Pushed the market down. " MK Global says that the Nifty's earnings per share estimates are also declining continuously. Ratings of shares are also being continuously reduced. Nifty companies (two-thirds of their shareholdings) have given signals of 5-fissive EPS growth on the basis of year-to-year basis, which has resulted so far.
Experts said, "This estimate is in sharp contrast to the growth expectations of the estimated 20 to 30 per cent for the financial year 2019-20 and the fiscal year 2020-21. Despite this decline, the valuation of the Nifty 50 index is high, Not included."
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The disappointment of the budget did not spare even large-cap stocks considered safe. On Monday, the BSE Sensex dropped by 650 points and finally closed at 36,700. The index closed at 36,068 on December 31. After the presentation of the budget, the Sensex has fallen by 9 percent.
During this time, the total market cap of BSE became clear by about 10 percent. On July 5, the market capitalization of all listed companies on BSE was Rs 153.58 lakh crore, which slipped to Rs 138.41 lakh crore on August 5. The market cap of 15 lakh crores became clear in this one month.
On Monday, on the basis of market cap, the shares of Reliance Industries, India's second-largest company, dipped 3.5%. Global brokerage firm Credis Suisse reduced the company's ratings by 26 percent.
Recently, other global brokerage firm UBS advised selling Maruti Suzuki, while CLSA also offered the same advice for Mahindra & Mahindra. Tata Motors, UPL, India Oil, Axis Bank, Vedanta and Tech Mahindra are some of the companies that missed the earnings estimates in the June quarter.
Companies like Yes Bank and Tata Motors have also reported a big drop in ratings by many agencies. Analysts believe that there is a disappointment in the market due to failure to meet earnings estimates. The government increased the tax on the very rich in the budget, after which foreign investors continued to sell.
After a long time on Monday, the rupee slipped across the 70 levels against the dollar. The stress of business wars around the world is dominating. With this beating, foreign investors sold shares worth Rs 15,000 crore in the Indian market. Foreign investors are known for their investments in benchmark stocks.
Shares of Indiabulls Housing Finance have dipped 36% in the past one month. Coal India, ONGC and Vedanta have also broken 14 to 18 per cent shares. Tata Motors (22.67 per cent down), Titan (19 per cent down) and Tata Steel (18 per cent down) have also seen a major fall in Tata group shares.
Market experts said, "There was no major reform or any major relief in the general budget, on the contrary, the rate of income tax was increased on the rich investors, along with suggestions of increasing the share of public shareholders in companies. Pushed the market down. " MK Global says that the Nifty's earnings per share estimates are also declining continuously. Ratings of shares are also being continuously reduced. Nifty companies (two-thirds of their shareholdings) have given signals of 5-fissive EPS growth on the basis of year-to-year basis, which has resulted so far.
Experts said, "This estimate is in sharp contrast to the growth expectations of the estimated 20 to 30 per cent for the financial year 2019-20 and the fiscal year 2020-21. Despite this decline, the valuation of the Nifty 50 index is high, Not included."
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