In a press release, SEBI said that fall in Indian stock markets is lower as compared to other global markets like US, China, Japan, Germany, France and so on.
“A comparative market movement of global indices indicates that the fall in the Indian indices has been significantly lower than the stock market in other countries,” SEBI said.
This press release from market regulator comes after headline indices Sensex and Nifty 50 hit a lower circuit and trade was halted for 45 minutes.
At the core of this downward spiral is the fear that the worsening coronavirus outbreak across the world will push the global economy into recession. With countries announcing lockdowns and factories shutting their operations, investors fear that credit quality of companies could deteriorate and lead to large-scale defaults in the system.
On Thursday, Indian equity indices witnessed their steepest fall in 11 years. After the correction, Sensex has plunged over 22% from its record high in January 2020.
|
Region |
Index |
Closing Index Value as on 12/03/2020 |
Closing Index Value as on 31/01/2020 |
% Change |
|
Russia |
RTS |
966.40 |
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% |
SEBI said that stock markets and the regulator have a risk management framework in place which automatically gets triggered in response to movements in the indices as well as individual stocks both in cash and derivatives market.
The regulator also gave list of some of these measures
- Value at risk margin with initial margin to cover 99% risk of a transaction
- Extreme loss margin to cover the residual risk of a transaction
- Collection of mark to market losses on daily basis
- Additional surveillance margins based on stress tests
- Circuit filters at index levels
- Circuit filters at stock levels
- Action on the basis of surveillance inputs
- Regular follow up by the clearing corporations with the clearing members for collection of margin and pay-in obligations.
SEBI said that it is also constantly keeping a check on settlement and clearance of trades. The regulator is also constantly monitoring positions of margin payments, margin utilization, adequacy securities deposited by the brokers with the clearing corporations and brokers pay-in’s obligations.
