7 charts that best reflect the deep cuts on D-Street
Sensex, Nifty deep in the red
The market had earlier witnessed these kinds of pressure on various occasions. For instance, the 30-share Sensex cracked over 60 per cent during the financial crisis in 2008-09 and over 50 per cent during the dot-com bubble in 2000-01.
Equity market has a tendency to recover smartly once the fear subsides. For instance, Sensex jumped more than 100 per cent over the next two years post the financial crisis.
Bluechips down in the dumps
Covid-19 delays India's growth recovery. The spread of coronavirus outside of China and in India, has substantially raised market concerns on demand destruction and a significant near-term impact on economic growth. Japanese brokerage firm Nomura said that the sudden change in the growth outlook has led to a sharp fall in asset prices. However, it is bullish on Reliance Industries, Ultratech Cement, Mahindra & Mahindra, Ashok Leyland and IGL amid the ongoing correction.
94% BSE stocks tank
“The current slower economic growth and changes in the prices of commodities and currencies, we estimate 10 per cent and 8 per cent downside risk to FY21 and FY22 consensus’ earnings estimates, respectively. We see earnings risk across sectors driven primarily by financials autos, IT services and metals,” Nomura said.
Mutual funds in red too
Ambani, Premji, Nadar all down