BUSINESS
Fears of a debt crisis in Europe and an accompanying sell-off in India have caused participants to trade on an intra-day basis and cut positions over the weekend or even through the night.
When Europe sneezes, India catches a cold. Or, so it appears from the aversion of market participants in recent weeks to hold on to their positions.
Fears of a debt crisis in Europe and an accompanying sell-off in India have caused participants to trade on an intra-day basis and cut positions over the weekend or even through the night.
The crises in Europe are centred on Greece, which is dealing with debt issues that threaten to spread to other parts of Europe, including Portugal and Spain. Leaders of the European Union, the 27 member bloc of which Greece is a part, on Thursday reached an agreement to help the country deal with its crises.
Previously, fears of a default had resulted in foreign institutional investors selling Rs 3,563.30 crore worth of Indian equities and the benchmark index, the Sensex, losing 1312.22 points since the beginning of the year.
The delivery volumes, or the number of trades that result in actual change in ownership, have dropped substantially since the markets began to fall. In the first week of trading this year, as much as 46.3% of trades resulted in delivery on the Bombay Stock Exchange. This figure dropped to 40.2% this week (markets are closed Friday on account of Mahashivaratri).
On the National Stock Exchange, deliveries have dropped from 39.9% in January to 33%. “People have been preferring to square off their positions and avoid maintaining them overnight. The fear has been that any adverse news about the issues in Greece and also in Spain and Portugal could lead to large swings overnight,” said Anup Bagchi, executive director, ICICI Securities.
“People are sceptical about the movement of the market and there is more trading happening than the building of long-term positions. There is a fatigue, which has come in with the kind of volatility that we have seen recently and people prefer to trade intra-day,” said Jitendra Panda, senior vice-president, Motilal Oswal Securities.
The Budget, the next big event on the horizon, also has people cautious. “After the Budget, depending on the provisions, investors are likely to take more long-term calls on which sector could show the most growth,” said Panda.
“The Budget and any decision taken on the securities transaction tax are likely to have an impact on the kind of long-term capital that we might see coming in,” said Rakesh Bansal, CEO, New Age Wealth Management. He believes the crucial support for the market remains at 4550 and the resistance at 4950.
Delhi residents defy firecracker ban, illuminate night sky with Diwali celebrations
'Since I've retired...': Rohit Sharma reacts after Mumbai Indians retain him for IPL 2025
Diwali 2024: How to get rid of acidity, bloating, constipation post Diwali binge?
IND vs NZ, 3rd Test Dream11 prediction: Fantasy cricket tips for India vs New Zealand match
IPL 2025: What is the remaining purse and RTM cards for all teams ahead of mega-auction?
Meet Indian man who secured job at Elon Musk's Tesla after sending...
'Isse zyada sundar...': Viral video captures aerial view of Diwali celebrations in Noida, WATCH
THIS company got richer by Rs 29878 crore on Diwali day due to...
Delhi's air quality deteriorates to 'very poor' category, likely to worsen after festival
IPL 2025: Rishabh Pant released by Delhi Capitals, CSK retains MS Dhoni as...
Meet woman, who quit NCPI as COO, now set to lead India's largest...
Viral: Businessman gifts Rs 1 crore Rolex watch to contractor for his...
Post-Diwali hangover? 5 easy tips to detox the liver
Pushpa 2: Allu Arjun, Rashmika Mandanna share film's NEW poster to wish fans on Diwali
Gautam Adani's companies set to supply 6500 MW of power to THIS state
WTC 2023-25 points table update after South Africa clean sweep Bangladesh 2-0 in Test series
Meet woman, college dropout who earns Rs 1494000 monthly, works just 4 hours a day, she is...
Why KL Rahul decided to part ways with Lucknow Super Giants ahead of IPL 2025 retention deadline?
Sebi issues Rs 154 crore demand notices to Anil Ambani's companies, asks them to pay within...
IND vs NZ: Jasprit Bumrah to miss third India vs New Zealand Test? Report says star pacer is....
What is Seasonal Affective Disorder? Why it happens in winter?
New Hezbollah chief Naim Qassem open to truce with Israel, says, 'we accept but…’
BSNL continues to rise, deploys over 50000 4G sites with Tata Group company in India's most...
'Either this or nothing': Elderly couple dances at Mohit Chauhan's concert, WATCH viral video
'That's so cheap': Sana Makbul CRITICISES pap after he tells her 'mazze nahi aa rahe' in viral video
Indian, Chinese troops at LAC exchange Diwali sweets after border disengagement
Dawood Ibrahim was fan of this superstar, invited him for tea, confessed a murder to him, then…
NEET entrance 2025 exam to happen online? Here's what high-level panel suggests
Jadeja to enter IPL auction? CSK eying THIS star player as MS Dhoni's successor
Ratan Tata once surprised his dog trainer at Bombay VT: 'You hold the pup, I’ll take...'
Woman finds bundle of old Rs 500 and Rs 1000 notes during Diwali cleaning, netizens call it...
IPL 2025: List of players set be retained on deadline day, CSK, RCB, MI will retain...
Kartik Aaryan says his film Bhool Bhulaiyaa 3 doesn't need cameos: 'Hume humaari...'
Meet man, who secured AIR 2644 in JEE, did B.Tech from IIT Kanpur, has now started doing...
Noida: Stunning drone footage captures Diwali celebrations, watch viral video
Is stock market open or closed on Diwali? Know details here
Don’t Move on Netflix movie review: Psychological thriller with enjoyable moments
Cricketer Ben Stokes' house burgled by masked robbers, England captain shares harrowing details
Diwali delights: Bengaluru man surprises mom with Apple iPhone 15, viral video wins internet, watch
'Divine festival of lights...' PM Narendra Modi extend his wishes on festival Diwali
Diwali 2024: Dos and don'ts, subh muhurat, rituals and more
Delhi pollution: National capital's air quality dips to 'very poor' on Diwali, AQI hits...
Varun Dhawan finally reveals daughter’s name on Amitabh Bachchan’s KBC 16: ‘We named her…’
Elon Musk is hiring Hindi tutors for his firm xAI, offering pay up to Rs...
When Abhishek Bachchan broke his silence on divorce rumours with Aishwarya Rai: ‘Will you let me…”
Triupati Laddo row: Andhra Pradesh govt appoints BR Naidu as new chairman of Tirupati temple board
Meet man who left his IT job to build Indian brand, competes with Domino's, Pizza Hut, he is...
Diwali 2024: Know puja vidhi, shubh muhurat, significance, rituals and more
Meet man, whose father is a taxi driver, clears UPSC with AIR...