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Sensex, Nifty plunge amid global turmoil

The pervasive risk aversion in international markets kept the dollar in high demand, adding further pressure on the rupee.

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Sensex falls 1,049 points, Nifty slips below 23,100 amid market downturn

The Indian equity markets nose-dived dramatically today, mirroring the upheaval in global markets. In the opening session, the Nifty and Sensex indices plunged sharply, sending shockwaves through the financial community.

The Sensex lost 2,600 points to end at 78,385.49, while the Nifty lost 463.50 points to close at 24,254.20. Critical indices, the Nifty 50 and S&P BSE Sensex were brought to an abrupt end from their record 14-year winning streak, amid a massive fall in information technology stocks. Investors scurried for cover as a global selloff was seen after below-expected economic data was released from the US.

At the same time, the rupee opened on a tepid note and fell to an all-time low of 83.80 against the US dollar. The pervasive risk aversion in international markets kept the dollar in high demand, adding further pressure on the rupee.

Friday’s after-market economic data revealed that the growth of jobs in the US had slowed more than expected in July. Slowing employment growth raises fear of an impending slowdown in the economy and further deteriorates already fragile sentiment.

Not forgetting the US presidential elections, to be held in November, is likely to keep investors away. The political uncertainty of the election added to the volatility of current market conditions.

Notably, global investors are also watching developments in the Middle East, where tension is escalating following reports that an Israeli assassination team killed one of Hamas’ top leaders, Ismail Haniyeh, in Tehran. This has added to the geopolitical uncertainties and piled on the market’s woes.

Among the losers at the BSE were Tata Motors, Tata Steel, JSW Steel, Adani Ports, Maruti, and Reliance Industries. These companies bore the brunt of the market selloff, reflecting the wide breadth of investor anxiety.

Sun Pharma and Hindustan Unilever, however, traded in green and offered a ray of hope to the market when most other stocks were getting mauled.

 Investors are still sizing up the aftermath of this turmoil on their portfolios and are hence very cautious. Uncertainty, which characterizes the present climate, has induced a state of high alert in investors, who are watching the situation with bated breath for any new developments that may further influence investment decisions.

The mix of weak economic indicators, political uncertainties, and spiraling tensions in geopolitics created a perfect storm for the markets to make investors cautious and alert. Given these choppy waters, whose focus remains on preserving capital and mitigating risks, many take a wait-and-see approach until clearer signals emerge.

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No one damaged EC the way Rajiv Kumar has done: Kejriwal on poisoning Yamuna remark notice

Failure to comply, the Commission warned, would result in appropriate action. The political stakes are undeniably high, with accusations flying between the AAP and the BJP-led Haryana government just days before a crucial election.

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Aam Aadmi Party (AAP) national convenor Arvind Kejriwal launched a scathing attack on Chief Election Commissioner (CEC) Rajiv Kumar on Thursday, accusing him of deliberately damaging the Election Commission of India’s credibility and engaging in partisan politics. The former Chief Minister said no one has damaged the election body the way Kumar has done.

The catalyst for this outburst was a notice issued by the CEC regarding Kejriwal’s allegations that the Haryana government was deliberately poisoning the Yamuna River, a crucial water source for Delhi.

Kejriwal, addressing a press conference, went on the offensive, claiming that Kumar’s actions were motivated by his desire for a lucrative post-retirement position. He vehemently declared, “No one has damaged the Election Commission the way Rajiv Kumar has done. If he wants, he can contest elections from any of the Delhi assembly seats,” challenging the CEC directly. His words carried a tone of defiance and a clear implication of political manoeuvring.

The core of Kejriwal’s accusations centred on the alleged contamination of the Yamuna River’s water supply to Delhi. He pledged to prevent Delhi’s residents from consuming the poisoned water, stating, “I will not let the people of Delhi drink poisonous water till I am alive. I know they will arrest me in two days, but I am not afraid,” underscoring his determination to fight the issue regardless of potential consequences.

This public confrontation followed the Election Commission’s expression of dissatisfaction with Kejriwal’s initial response to their notice. The Commission deemed his reply inadequate and gave him a second chance to substantiate his serious allegations against the Haryana government. The original reply, a 14-page document, detailed the alleged severe contamination and toxicity of the water from Haryana and the potential for serious health consequences and even fatalities.

The timing of this controversy is highly significant, coinciding with the upcoming Delhi elections scheduled for February 5th, with results to be announced on February 8. The Election Commission’s latest notice, issued on Thursday, demanded specific evidence by 11 AM on January 31st, including details of the type, quantity, and method of the alleged poisoning, along with precise information about the engineers involved and the methodology used for testing the water quality.

Failure to comply, the Commission warned, would result in appropriate action. The political stakes are undeniably high, with accusations flying between the AAP and the BJP-led Haryana government just days before a crucial election.

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Delhi elections: Swati Maliwal detained for dumping garbage outside Arvind Kejriwal’s residence

She emphasized that the protest wasn’t targeted at any specific party but rather at the systemic failure to address Delhi’s cleanliness crisis.

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On Thursday, Delhi Police took Rajya Sabha MP Swati Maliwal into custody for dumping garbage outside the residence of Aam Aadmi Party (AAP) national convener and former Delhi Chief Minister Arvind Kejriwal. This act of protest was a dramatic display of her discontent with the city’s deteriorating sanitation conditions.

Maliwal, once a close confidante of Kejriwal, has transformed into a staunch critic. This shift in allegiance followed an alleged assault at Kejriwal’s residence in May of the previous year, an incident that irrevocably altered their relationship. Since then, she has consistently seized opportunities to publicly lambaste Kejriwal and other AAP leaders, utilizing her platform to voice her grievances.

Her latest protest was meticulously planned. Earlier that day, she announced her intention to deliver three truckloads of garbage to Kejriwal’s doorstep, a symbolic gesture reflecting her assessment of Delhi’s current state. Speaking to the media following her detention, she delivered a scathing critique of the city’s cleanliness, characterizing it as an overflowing garbage bin.

https://twitter.com/SwatiJaiHind/status/1884901493918077281

“The whole city has turned into a garbage bin,” she declared. “I came here to have a conversation with Arvind Kejriwal. I would say to him, ‘Sudhar jao, warna janata sudhaar degi’ – ‘Reform yourself, or the people will reform you.'” She expressed complete disregard for potential repercussions, boldly stating, “I am neither afraid of his goons nor his police.”

Maliwal’s protest was not merely a personal vendetta. She framed it as a response to numerous citizen complaints, particularly those from residents of Vikaspuri who had reported an unaddressed garbage dump. She emphasized that the protest wasn’t targeted at any specific party but rather at the systemic failure to address Delhi’s cleanliness crisis.

“This protest is not against any party,” she clarified. “Today, Delhi is in an unprecedentedly bad state. Every nook and corner of Delhi is dirty, roads are broken, and drains are overflowing.” She used the opportunity to highlight the disconnect between the ruling party and the lived realities of Delhi’s citizens, asserting that Kejriwal has lost touch with the ground realities of the city he governs. The garbage, she declared, was a “filthy gift” from the AAP government to the people of Delhi.

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BJP’s Harpreet Kaur Babla wins Chandigarh mayor election

The INDIA bloc will undoubtedly need to address the internal fissures exposed by this election to effectively challenge the BJP’s dominance.

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The INDIA bloc, a significant Opposition, experienced a significant setback in the Chandigarh Municipal Corporation (CMC) mayoral elections on Thursday. Despite holding a seemingly comfortable numerical advantage, their joint candidate from the Aam Aadmi Party (AAP) and the Indian National Congress (INC), Prem Lata, lost to the BJP’s Harpreet Kaur Babla. This defeat highlights internal divisions and vulnerabilities within the Opposition coalition.

The election results revealed a surprising outcome. The BJP, possessing only 16 seats in the 35-member House, managed to secure 19 votes for their candidate, Harpreet Kaur Babla. The AAP-Congress alliance, with a combined strength of 19 councillors plus the additional vote of the Congress Member of Parliament from Chandigarh (an ex-officio member with voting rights), should have easily secured a majority. Their joint candidate, Prem Lata, however, only received 17 votes. The discrepancy strongly indicates significant cross-voting within the opposition ranks, undermining the INDIA bloc’s unified front.

The secret ballot nature of the election made it impossible to definitively pinpoint the defectors. Speculation abounds regarding potential reasons for the cross-voting, ranging from individual political ambitions to possible inducements or pressures from the ruling BJP. The loss raises serious questions about the coalition’s ability to present a cohesive and reliable challenge to the BJP in future elections. The incident serves as a cautionary tale, illustrating the fragility of alliances and the potential for internal conflicts to derail even seemingly insurmountable numerical advantages.

This setback is particularly poignant considering the history surrounding Chandigarh’s mayoral elections. The 2024 mayoral poll saw a Supreme Court intervention, overturning a BJP victory due to the then-presiding officer’s controversial invalidation of eight AAP-supporting ballots. This previous legal battle highlighted the contentious political climate in Chandigarh and the lengths to which parties are willing to go to secure victory.

The current defeat underscores the continuing volatility of the political landscape and the BJP’s persistent ability to navigate complex electoral scenarios. The INDIA bloc will undoubtedly need to address the internal fissures exposed by this election to effectively challenge the BJP’s dominance.

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