World Economy

India Equities Drown

India Equities DrownIndia Equities Drown

Concerns over the global economic recovery, the Chinese economy, slipping commodity prices and a debt-defying con job by an international auto major depressed Indian equity markets by over 1% in the just-concluded weekly trade.

The barometer 30-scrip sensitive index (S&P Sensex) of the Mumbai Stock Exchange fell by 354.5 points or 1.35% to 25,863.50 points from its previous weekly close of 26,218 points, IANS reported.

The wider 50-scrip Nifty of the National Stock Exchange too declined. It plunged by 113.4 points or 1.42% to 7,868.50 points.

“During the just concluded week, the market corrected by more than 1%, which is mainly due to sharp selling on Tuesday, September 22,” Vaibhav Agrawal, vice president, research, Angel Broking, told IANS.

The barometer index had slumped over 540 points or 2.07% on Tuesday, as major European markets sank by 2-3%. “The decline in our domestic markets was mainly owing to fall in the European and US markets post the scandal surrounding emissions-test cheating at (German car major) Volkswagen AG coming to the fore,” Agrawal stated.

The downward trajectory was ignited by the Volkswagen crisis, which is being dubbed as one of the “most expensive con-jobs ever.” The crisis soon cascaded into a worldwide downfall in the entire auto segment stocks.

The fudging scandal began unfolding last week when the European car giant said it had used a software in the US to provide false emission test results.

In India, stocks of Bosch and Motherson Sumi were negatively impacted by the fudging crises.

If fudging was not enough, a string of negative news items emanating out of China prompted fears of a recession in the $10 trillion economy.