28 October, 2020

Another Ice Meltdown

The e-glut has claimed its victims. Now, after the shakeout only the serious players are left standing.

Another Ice Meltdown
outlookindia.com
-0001-11-30T00:00:00+05:53

The higher they rise, the harder they fall? In late March, the legendary Mark Mobius, chief of Templeton Emerging Markets, declared that US stockmarkets were ripe for a massive crash. Oops. The seemingly never-to-end rise of the Nasdaq index, the tech-heavy US stockmarket, where most software and all dotcom companies are listed, halted. A slow fall began. Then, on Friday, April 14, the US Labour Department announced that inflation was on the way up, ending its five-year hibernation. To investors, that meant short-term interest rates may be pushed beyond the expected quarter-point hike. Waves of selling immediately swamped US stocks. The three major Wall Street indices - Dow Jones, Nasdaq Composite and Standard & Poor’s 500 - logged their biggest one-day point declines in history. The Dow lost a record 617.78 points, or 5.66 per cent. The Nasdaq Composite was driven down 9.67 per cent. When Black Friday ended, the Composite had lost 1126 points in a week and was 34 per cent down from its March 10 high of 5048.

Indian bourses followed suit. Between April 11 and April...

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