Plunging trend in Indian stock market reverses on Monday
The Indian stock markets saw a reverse trend with higher openings on Monday (March 2) morning after a constant decline over the past week (February 24 to 28). All the major companies saw a decline in market capital during this period.
Globally, stock markets were plummeting for the past one week and the same trend was seen in Indian stock markets as well. Both, Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) tanked by 5.11 and 5.30 per cent points from February 24 to 28. However, the introduction of SBI Card IPOs seem to be helping the rise on Monday.
SBI card (SBI Cards and Payment Services) IPO has offered an initial public offering of 13.72 crore shares to be sold from March 2 to 5. The company is aiming to raise up to ₹10,341 crore through these IPOs. The price band stays between ₹750 and ₹755, informed the company.
During the last week, both the NSE and BSE tanked as the global markets also saw the declining trends as an effect of the coronavirus outbreak. The week saw a fall of $444 billion in the wealth of the world’s richest 500 people as coronavirus continued to spread fear amongst the investors across the world.
Jeff Bezos, the richest man on the earth, suffered a net decline of $11.9 billion followed by Bill Gates and Bernard Arnault who lost $10 and $9.1 billion, respectively.
Top 10 companies, by volume, have registered a constant decline in that week. Reliance and Infosys were the biggest losers with an 8.04 per cent decline in the stock price over the week. Along with these two giants, ICICI and SBI also observed more than 6 per cent dip in stock price. Housing Development Finance Corporation, HDFC Bank, Bharti Airtel, Tata Consultancy Services, Hindustan Unilever Limited and Kotak Mahindra were among the other top players that witnessed a fall.
The advance-decline figures in BSE remained at 405 and 2,073 respectively, while NSE too observed 156 advances and 1,532 declines by the end of the week.
Ashutosh Joshi, a Pune-based stockbroker, while explaining the reversed trend said, “The markets have fallen for six consecutive days, and the bounce back is natural.”
“Asian markets like Nikkei, Hang Seng, and Shanghai Stock Exchange have opened up a little bit higher which is reflected in the Indian markets. Also, one can consider the SBI Card to be one of the accelerating factor, but not the major reason for the jump,” he added.