Market Fall Significantly Lower Than Global Peers, Says Regulator Sebi
"Fall in the Indian indices has been significantly lower than the stock market in other countries," the market regulator Securities and Exchange Board of India said in a media statement issued in context of the sharp selloff that engulfed Indian markets earlier in the day. The benchmark indices slumped 10 per cent in morning, consequently triggering circuit breakers and leading to a trading halt. The sharp fall in the Indian markets came as the benchmarks mirrored losses in global markets, which went into tailspin following COVID-19 turning pandemic.
"Over the last few days the Indian stock market has been moving in tandem with other global markets owing to concerns relating to COVID-19 pandemic, resultant fear of economic slowdown, recent fall in global crude prices, etc.," SEBI said in a statement. (Read Full Statement Here)
| Region | Index | Closing Index Value as on 12/03/2020 | Closing Index Value as on 31/01/2020 | % Change |
|---|---|---|---|---|
| Russia | RTS | 966.4 | 1,517.07 | -36.30% |
| Brazil | BOVESPA | 72,583.00 | 113,760.60 | -36.20% |
| France | CAC | 4,044.26 | 5,806.34 | -30.35% |
| Germany | DAX | 9,161.13 | 12,981.97 | -29.43% |
| Argentina | MERVAL | 28,351.89 | 40,105.04 | -29.31% |
| United Kingdom | FTSE 100 | 5,237.50 | 7,286.01 | -28.12% |
| United States | DJIA | 21,200.62 | 28,256.03 | -24.97% |
| United States | NASDAQ | 7,201.80 | 9,150.94 | -21.30% |
| Japan | Nikkei | 18,559.63 | 23,205.18 | -20.02% |
| India | Nifty 50 | 9,590.15 | 11,962.10 | -19.83% |
| India | Sensex 30 | 32,778.14 | 40,723.49 | -19.51% |
| Singapore | Strait Times | 2,678.64 | 3,153.73 | -15.06% |
| South Korea | KOSPI | 1,834.33 | 2,119.01 | -13.43% |
| Taiwan | TAIEX | 10,422.32 | 11,495.10 | -9.33% |
| Hong Kong | Hang Seng | 24,309.07 | 26,312.63 | -7.61% |
| China | Shanghai Composite | 2,923.49 | 2,976.53 | -1.78% |
| (Source: Sebi) | ||||
Highlighting the risk management framework in place, Sebi said, "SEBI and Stock Exchanges have a robust system in place, which automatically gets triggered in response to movements in the indices (BSE Sensex and NSE Nifty) as well as individual stocks both in cash and derivatives market."
"The positions of margin payments, margin utilization, adequacy of collaterals (securities deposited by the brokers with the clearing corporations) and the pay-in's obligations being met by the clearing members (brokers) are being continuously monitored. Similarly, the settlement and clearance of trades are also being constantly monitored," SEBI added.
Amid another day of mayhem in domestic markets, the S&P BSE Sensex index recovered 3,960.86 points to briefly turn positive and touch 33,349.83, after nosediving to as low as 29,388.97, as trading resumed following a 45-minute halt.
The lower circuit in the Indian markets was triggered for the first time since the 2008 global financial crisis, and the trading resumed at 10:20 am. The next circuit breaker limit for the benchmark indices is at 15 per cent. A circuit breaker is meant to protect investors from a sudden tailspin in the markets.