A morning walk down Dalal Street | Higher volatility suggests bear dominance & pessimism in market

Episode 1523,   Aug 06, 2019, 02:14 AM

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Indian markets which were already reeling under the pressure of global cues saw a knee jerk react after the government revoked Article 370 to take away Jammu and Kashmir's special status.

The border state will be bifurcated. Jammu and Kashmir will be a Union Territory with a legislature, while Ladakh region will be a union territory but without an assembly, home minister Amit Shah told the Rajya Sabha in the morning.

The index hit a record high of 12,103 in June and has since shed more than 1,200 points, or little over 10 percent, to touch 10,862 on August 5.

More than 500 BSE stocks hit a fresh 52-week low. These included Indian Bank, Future Consumer, V Mart Retail, YES Bank, Tata Motors (DVR), Tata Motors, Fortis Health, JSPL, Wockhardt, Tata Steel, Hindalco Industries, GAIL India, Bank of India, Motherson Sumi, Escorts and ITC.

The rupee on August 5 crashed by 113 paise -- the biggest single-day drop in the past six years -- to close at a five-month low of 70.73 due to heavy capital outflows by investors anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.