For the second day, stock markets across the have undergone painful volatility, but at the end of the day, many have withstood the turbulence. Notable was the Indian market where the indices almost closed flat.
In Asia, Japanese stock market which was closed yesterday has undergone their downward scoop today with Nikkei losing 5%. Australia and Hong Kong also have continued their slide.
But in India, the market was relatively resilient though initially the indices lost values. As the day progressed, Indian market slowly decoupled from their Asian peers. India’s recovery without transferring the scoop to the western markets is because of positive momentum in the economy.
Initial trends from Europe also indicate that stock indices are recovering from the turbulence.
Government sources and market spokesmen in respective countries have tried to stop the free fall of indices right from Japan. Australia’s Reserve Bank governor Glenn Stevens stated that global slump were ‘overdone’. But the Australian indices fell by more than one percent; continuing the downward slump but at low pace.
In India, FM Arun Jaitely advised investors not to get panic. He reminded that economy has strength and will survive any globally transferred volatility.
Fortunately, Chinese market will open only in the next week and thus negative fallout of a bigger Chinese slide was avoided. This has enabled India and other European markets to make a comeback.