ETV Bharat / business

Sensex sinks 587 points; Yes Bank nosedives 12%

Investor sentiment also tanked after Chief Economic Adviser Krishnamurthy Subramanian virtually ruled out a stimulus package from the government.

Sensex sinks 587 points; Yes Bank nosedives 12%

Sensex sinks 587 points

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Published : Aug 22, 2019, 4:51 PM IST

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Updated : Aug 22, 2019, 5:09 PM IST

Mumbai: Benchmark equity index Sensex plummeted 587 points on Thursday, pressured by heavy selling in banking and energy stocks amid weak global cues.

Investor sentiment also tanked after Chief Economic Adviser Krishnamurthy Subramanian virtually ruled out a stimulus package from the government.

The 30-share Sensex sank 587.44 points, or 1.59 per cent, to 36,472.93. It hit an intra-day low of 36,391.35 and a high of 37,087.58.

The broader NSE Nifty ended 177.35 points, or 1.62 per cent, down at 10,741.35. During the day, it plunged to a low of 10,718.30 and touched a high of 10,908.25.

Yes Bank was the biggest laggard in the Sensex pack, plummeting 13.91 per cent, followed by Vedanta, Bajaj Finance and Tata Motors, which declined up to 7.76 per cent.

ONGC, SBI, Hero MotoCorp, ICICI Bank, Tata Steel, HDFC twins and RIL also ended in the red.

Tech Mahindra, TCS, HUL and HCL Tech were the only gainers, spurting up to 1.57 per cent.

Read More: UAE will be first Middle East country to issue RuPay card

According to traders, Chief Economic Adviser Subramanian's comments practically ruling out a stimulus package for the economy weighed on investor sentiment.

"If we basically expect the government to use taxpayers' money to intervene every time when there are some 'sunsets', then I think you introduce possible moral hazards from 'too big to fail' and as well as the possibility of a situation where profits are private and losses are socialised," Subramanian said at an event.

Globally, markets were jittery ahead of comments from Federal Reserve Chair Jerome Powell at Jackson Hole, Wyoming, US.

Elsewhere in Asia, Shanghai Composite Index and Nikkei ended on a positive note, while Hang Seng and Kospi settled in the red.

Equities in Europe were trading lower in their respective early sessions.

Meanwhile, the Indian rupee depreciated 33 paise to 71.88 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 0.65 per cent to USD 60.69 per barrel.

Mumbai: Benchmark equity index Sensex plummeted 587 points on Thursday, pressured by heavy selling in banking and energy stocks amid weak global cues.

Investor sentiment also tanked after Chief Economic Adviser Krishnamurthy Subramanian virtually ruled out a stimulus package from the government.

The 30-share Sensex sank 587.44 points, or 1.59 per cent, to 36,472.93. It hit an intra-day low of 36,391.35 and a high of 37,087.58.

The broader NSE Nifty ended 177.35 points, or 1.62 per cent, down at 10,741.35. During the day, it plunged to a low of 10,718.30 and touched a high of 10,908.25.

Yes Bank was the biggest laggard in the Sensex pack, plummeting 13.91 per cent, followed by Vedanta, Bajaj Finance and Tata Motors, which declined up to 7.76 per cent.

ONGC, SBI, Hero MotoCorp, ICICI Bank, Tata Steel, HDFC twins and RIL also ended in the red.

Tech Mahindra, TCS, HUL and HCL Tech were the only gainers, spurting up to 1.57 per cent.

Read More: UAE will be first Middle East country to issue RuPay card

According to traders, Chief Economic Adviser Subramanian's comments practically ruling out a stimulus package for the economy weighed on investor sentiment.

"If we basically expect the government to use taxpayers' money to intervene every time when there are some 'sunsets', then I think you introduce possible moral hazards from 'too big to fail' and as well as the possibility of a situation where profits are private and losses are socialised," Subramanian said at an event.

Globally, markets were jittery ahead of comments from Federal Reserve Chair Jerome Powell at Jackson Hole, Wyoming, US.

Elsewhere in Asia, Shanghai Composite Index and Nikkei ended on a positive note, while Hang Seng and Kospi settled in the red.

Equities in Europe were trading lower in their respective early sessions.

Meanwhile, the Indian rupee depreciated 33 paise to 71.88 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 0.65 per cent to USD 60.69 per barrel.

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URG COM ECO ESPL
.MUMBAI BCM6
BIZ-GADKARI-SME
Gadkari eyes Rs 10L-cr revenue from e-comm project in 2-3 yrs
Mumbai, Aug 22 (PTI) Union minister Nitin Gadkari on
Thursday said the government's plan to launch Bharatcraft
portal, an e-commerce marketing platform, has the potential to
achieve revenues of around Rs 10 lakh crore in the 2-3 years.
"The Bharatcraft portal, which will be on the lines of
Alibaba and Amazon, will provide a platform for MSMEs to
market and sell their products and in turn boost the sector,"
Gadkari said.
Speaking at 200th listing of an MSME company 'Wonder
Fibromats' on NSE EMERGE, Gadkari said, "We want to give a
boost to the MSME sector which is currently contributing
nearly 29 per cent to the manufacturing segment and 40 per
cent to the exports."
The MSME sector has the potential to generate
additional employment of 5 crore in the next five years. The
government has set a target to increase the contribution of
MSMEs in the manufacturing sector to 50 per cent in the next
five years, he added.
Gadkari further said that payments have always been
the issue for the MSMEs as the Government and public sectors
delay their payments.
"A committee has been set up to study this aspect and
we expect the report in the next few days. The government is
planning to enable legislation framework, which would help the
MSME sector get their payments faster, within 45 days of the
bills being due. Any further delay in payments would lead to
legal implications," the minister said.
He said the government will encourage MSMEs to
contribute more towards exports, how they could contribute to
overall economic growth and also enhance employment potential.
There was a need for the MSMEs to come in the
mainstream and take advantage of the NSE platform for raising
funds.
"At a time when we have nearly 6 crore MSMEs in the
country, we have only 200 listings on such a platform. There
are MSMEs who have larger exposure to exports. I want such
companies to come forward and use this instrument. This will
boost the sector," Gadkari said, adding that if small
investors start investing in such platform, it will open a new
gateway for development.
"Attaining finance from banks is difficult. Government
acknowledges the efforts and initiatives taken by NSE to
empower these small businesses and launch MSME-specific equity
trading platform to enable them to raise capital. This can be
an opportunity for MSMEs," he added.
Speaking at the event, NSE managing director and CEO
Vikram Limaye said, "NSE has always been at the forefront of
strengthening and supporting small and medium enterprises.
We believe the SMEs are crucial not only for economic growth,
but also for employment and inclusive growth."
The event also witnessed the migration of two SME
companies Madhya Bharat Agro Products and Krishana Phoschem to
the mainboard of NSE. The listed SMEs on NSE are from 16
states.
NSE EMERGE now has 200 companies listed on its SME
platform, raising upwards of Rs 3,100 crore over a period of
last seven years since its inception in 2012.
The market capitalization of these listed small and
medium enterprises is in the region of Rs 8,800 crore, and 22
SMEs have over time migrated to the main board of NSE. PTI PSK
AP
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Last Updated : Aug 22, 2019, 5:09 PM IST

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