On Monday, the Indian stock market experienced a lackluster performance, with both major indices, BSE Sensex and Nifty 50, dropping by slightly over 1%.
The BSE Sensex, comprising 30 shares, declined by 1.14% or 845.12 points to settle at 73,399.78. Notably, Wipro, ICICI Bank, and Bajaj Finserv emerged as the top underperformers within this index.
Similarly, the broader Nifty 50 index fell by 1.1% or 246.90 points, closing the day at 22,272.50. Within this index, Shriram Finance, Wipro, and ICICI Bank were the most negatively impacted stocks. It was a bearish day for the wider markets, with all indices remaining in negative territory for the majority of April 15.
5 Reasons for Stock Market Crash
1. Escalating Tensions in the Middle East
Amid escalating tensions in the Middle East due to Iran’s attack on Israel, investor sentiment was severely impacted, leading some to sell shares to mitigate potential losses from heightened volatility.
2. Rising Inflation Concerns in the US and India
The United States Department of Labour released data indicating that consumer price inflation in the US rose to 3.5% in March, a 30 basis point increase from February. This unexpected rise in inflation also caused US bond yields to surge. Firstpost had previously highlighted the potential negative impact of this inflation data on inflows from foreign portfolio investors (FPIs), potentially affecting both the Indian markets and domestic investor sentiment. In India, wholesale inflation increased by 0.53% in March, while retail inflation decreased to a five-month low of 4.85%.
3. Weak Handover from US Markets
Wall Street’s major indices reacted unfavorably to the inflation data on Friday, which subsequently had a negative impact on Dalal Street as well.
4. Changes in the India-Mauritius Tax Treaty
Concerns arose following changes to the India-Mauritius tax treaty, with the Income Tax Department announcing that an amended protocol on the double taxation avoidance agreement (DTAA) with Mauritius is pending ratification and notification. The amendment introduces a Principal Purpose Test (PPT) to determine if foreign investors routed investments through Mauritius solely for tax benefits. Investments made with the primary intent of tax evasion will not qualify for tax benefits. This development raised concerns about increased scrutiny on genuine investors from Mauritius, leading some to withdraw their funds and contributing to the market downturn on Dalal Street.
5. Profit-Booking Amid Near-Record Highs
Lastly, with the Sensex and Nifty reaching near-record highs recently, many investors found it opportune to book profits. This trend was particularly evident in mid-cap and small-cap stocks, which had seen increased valuations
Stocks to Consider During This Dip
Bharat Electronics Limited
Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force. BEL has also diversified into various areas like homeland security solutions, smart cities, e-governance solutions, space electronics including satellite integration, energy storage products including e-vehicle charging stations, solar, network & cyber security, railways & metro solutions, airport solutions, Electronic Voting Machines, telecom products, passive night vision devices, medical electronics, composites and software solutions.
IDFC First Bank
IDFC First Bank is a private sector bank in India. It was established in November 2015 with the merger of IDFC Bank and Capital First. The bank offers a wide range of financial products and services to its customers, including savings accounts, current accounts, fixed deposits, loans, credit cards, and more.
IDFC First Bank aims to provide seamless banking experiences to its customers through digital platforms and innovative banking solutions. The bank has a strong presence in urban and rural areas, catering to the diverse financial needs of individuals, businesses, and corporates.
In addition to its banking services, IDFC First Bank is also committed to promoting financial inclusion and empowering communities through various initiatives and programs.
Overall, IDFC First Bank is known for its customer-centric approach, robust banking infrastructure, and commitment to driving financial growth and prosperity.
EaseMYTrip
EaseMyTrip commenced its operations in 2008 by focusing on the B2B2C (business to business to customer) distribution channel and providing travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. Subsequently, by leveraging its B2B2C channel, the company commenced operations in the B2C (business to customer) distribution channel in 2011by primarily focusing on the growing Indian middle class population’s travel requirements. With our presence in the B2B2C and B2C channels, we were able to commence operations in the B2E (business to enterprise) distribution channel in 2013 with the aim of providing end-to-end travel solutions to corporates. Our presence in three distinct distribution channels provide us with a diversified customer base and wide distribution network.
Indrapras Med Corp
Indraprastha Medical Corporation Limited (IMCL) is promoted in the Joint Sector by the Govt. of National Capital Territory of Delhi and Apollo Hospitals Group, a pioneer of Corporate Hospitals in India founded by Dr. Prathap C. Reddy. A public limited Company namely “Indraprastha Medical Corporation Limited” was incorporated in the year 1988. This Public Private Partnership (PPP) Project was for setting up “Indraprastha Apollo Hospitals” –multi-speciality tertiary care referral hospital at Sarita Vihar, New Delhi. Govt. of NCT of Delhi and Apollo Hospitals Group holds 26% and 25% of the share capital respectively. Balance 49% of the share capital is held by the Public.
As on 1st December, 2023, the Board of Directors of IMCL consists of 15 (Fifteen) members comprising of 1 (one) Executive Director and 14 (Fourteen) Non-Executive Directors including 9 (Nine) Independent Directors. Subject to the superintendence, direction and control of the Board, the day-to-day management and administration of the Company vests in the Managing Director.
Indraprastha Apollo Hospitals, New Delhi is a multi-specialty tertiary acute care hospital with 710 beds and one of the most sought after destinations in Asia for healthcare. A state-of-the art modern facility in the heart of the capital, it is spread over 15 acres and has a built-up area of over 600,000 square feet.
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