00:00Meanwhile, the Indian stock market witnessed bloodbath.
00:04The sense is crashing over 1,000 points and the nifty plunging below 22,250 to hit a fresh 52
00:11-week low.
00:12What's triggered this? We'll break that down for you.
00:17It was a terrible Thursday for stock markets with a relentless sell-off pushing the nifty to a fresh 52
00:24-week low,
00:25wiping out investor wealth and sending shockwaves across the market.
00:30The 50-stock nifty plunged more than 370 points to close near 22,232,
00:36while the sensex lost over 1,000 points as selling intensified across sectors.
00:42The pressure began with relentless selling by foreign institutional investors.
00:47Overseas investors have pulled out nearly $5 billion in just nine trading sessions,
00:52adding to the record exodus from Indian equities this year.
00:55But the decline became even steeper as news came in of Brent crude crossing $105 a barrel.
01:01For an oil-importing economy like India, that's bad news for inflation, corporate earnings and the current account.
01:08Adding to the nervousness, bond deals are climbing across global markets,
01:12making fixed-income assets more attractive and putting further pressure on equities.
01:17And the rupee hovering near its record low against the dollar has only deepened the worries.
01:23Whether it is oil, whether it is interest rate across the world, inflation across the world,
01:30and thereafter interest rate increased by Fed and now by Indian RBI.
01:36So I think world macros are challenging.
01:39Indian macros are in a good place and improving.
01:46But what we have seen now is basically on the back of an interest rate increase from Fed,
01:51I think RBI has also increased because there are concerns on inflation in India also,
01:55and largely to do with the oil prices.
01:58Interestingly, the IT index was the lone bright spot for much of the trading session,
02:02pulled up by optimism around the TCS results, which would open the Q2 earnings season.
02:07But even that defense collapsed in the final minutes of trade
02:10as selling pressure dragged the IT index into negative territory.
02:14By the closing bell, not a single sector had escaped the market route.
02:19On one hand, oil prices have risen and import bills have gone up.
02:24Rupee has fallen. India's exports have fallen.
02:27And as a result of rising imports and falling exports, you have a further strain on the rupee.
02:34On the other hand, domestically, you have had a number of local factors,
02:39you know, unnecessary points such as insurance industry trying to bring down the pricing,
02:44brokerage industry, STT rates being high, hospitals, you know, talking about putting a pricing cap.
02:52Now, for companies to invest, we need certain amount of stability and clarity.
02:56So I think domestic factors too have contributed.
02:59And third, strategically, is, you know, innovation on a broad scale
03:03across any big sector has remained fairly subdued in India.
03:07So far, investors have lost around 11 lakh crore rupees in October in just five trading sessions.
03:14So is the worst over?
03:16The immediate outlook remains fragile.
03:18Markets will closely track crude oil prices, global bond yields, the rupee and foreign investor flows.
03:24Unless oil prices cool and FII selling eases, any recovery could struggle to sustain.
03:30For now, the message from Dalal Street is clear.
03:33The bears are firmly in control and the next test for the market may be just around the corner.
03:39Dora Report, Business Today TV.
