With the Sensexdown -22.56% since the closing peak of January 29, 2015, investors, especially those who entered the equity markets for the first time in the post-election rally, are experiencing a lot of pain. Here is what they should do to survive this downturn.
Markets have recovered from their day’s lows, amid firm European cues, even as bank shares continue to lead the decline after a host of state owned banks reported huge losses because of higher provisioning on account of rising non-performing assets.
At 2:30pm, the S&P BSE Sensex was down 193 points at 23,828 and the Nifty50 was down 62 points at 7,236 after hitting an intra-day low of 7,177.75.
Markets continue their southward journey triggered by a massive sell-off in global equities. However, a revision in country’s GDP growth for the current fiscal year has arrested the free fall on Dalal Street.
At 2 pm, the S&P BSE Sensex was down 286 points at 24,001 and the Nifty50 was down 92 points at 7,295.
Reserve Bank Governor Raghuram Rajan on Wednesday sought to ease fears amid the stock market plunge and therupee nearing its lowest-ever level, saying things will stabilise and people will look at stable emerging markets, including India.
The rupee, Rajan said, has been “relatively strong” in the emerging-market currency basket, but India is affected by the “same kind of jitters” hitting other world markets.
“My sense is that, at this point, if you are an emerging market, you focus on fundamentals, try and get inflation down, try and get your current account deficit down, keep your fiscal on target, do all the good things, and then people reward you,” he said in Davos.
Investors “take the money off the table in a hurry when they are doing it everywhere, but then they come back”.
“My sense is that after the initial volatility, things will stabilise, people will try and look for the good, stable emerging markets. India is one of them. Our growth is pretty good, all the other indicators seem to be going well,” he told CNBC. Read Articles
French telecom major Orange has acquired Bharti Airtel’s operations in Burkina Faso and Sierra Leone. The dealwas in the making since July last year when the French company was reported to take over operations of Bharti’s operations in a few African countries.
According to a company statement, Orange will acquire 100% stake in the two companies’ share capital. The size of the deal was not announced. The consolidated revenue of the two companies is around 275 million euros, Bharti Airtel said in a statement. Read Articles
Whirlpool of India Ltd, the Indian subsidiary of the global appliances major, has posted Rs 55.3 crore net profit due to better realisation from its inventories in the quarter ended 31st March, 2015. During the period, the company’s net earnings surged 55% from Rs 36 crore same period last year. In the quarter, Whirlpool’s net sales grew 18% to Rs 748 crore from Rs 637 crore on a year on year basis.
Commenting on the result, Arvind Uppal, Chairman, Whirlpool of India Limited and President Asia Pacific, Whirlpool Corporation said, “We delivered strong resultsin the fouth quarter driven by both top line growth and moderation in input costs.
Whirlpool India Share Price – During 2014-15, Whirlpool’s net profit surged 71% to Rs 211 crore from Rs 123 crore in the previous financial year. On a yearly basis, the company’s revenue grew 16% to Rs 3,167 crore from Rs 2,726 crore. In 2014-15, while Whirlpool’s raw material costs shoot up by 20%, higher realisation from its inventory stocks from the previous year helped the company keep its total expenses at a 13% higher level.
Since the beginning the current financial year lower temperature across the country has subdued the sales of home appliances. However”, Uppal seems optimistic. “The impact of unseasonal weather conditions is likely to moderate demand in semi-urban and rural areas, but we remain optimistic that growth will accelerate in the second half of the year, he said.
At the end of yesterday, the home appliances major’s stocks surged 2.26% to Rs 734.4 in BSE. Bombay Stock exchange’s benchmark 30-share index grew 0.69% to 27,837.21 points at the closing of the day.