Mumbai: Around Rs 7 lakh crore of investor wealth was wiped out on Black Monday, the highest ever, as the Sensex plunged by 1,624.51 points, or 5.94 per cent, to end the trading day at 25,741.56.
Chinese equities were rising higher when its economy was slowing down and global commodity prices were crashing. Now the global markets are catching up with reality. An increasing number of investors are turning risk-averse and seeking safer assets like the dollar and US treasury bonds,” said Andrew Holland, chief executive officer of Ambit Investment Advisors.
While global markets are expected to see further corrections in the near term, Mr Holland said India was now looking much more attractive among emerging markets and any further fall in equities would provide a good opportunity to make fresh investments.
“Global funds are facing severe redemption pressure from their clients, forcing fund managers to liquidate their equity holdings worldwide. The Indian equity markets will continue to trade lower if weakness persists in global stocks. It will take a week or so before the markets find their bottom,” said Nirmal Jain, founder and chairman of India Infoline....