Stock Market News: AI Bubble Panic Triggers Market Crash: Nifty Slips to 23,100 — India Today

[00:00:00] Speaker 1: and first up on your screen the rupee now down 37 PSA in opening tray the rupee opening at 95.32 to the dollar versus 94.95 to the dollar previously so it's opened at 95.32 which is a marginal appreciation remember there have been steps taken in order to contain the slide in the currency and it is around that 94 mark that the government does expect it to stabilize precious metals meanwhile sliding in early trade mcx gold down 1900 rupees to 1.54 lakhs per 10 gram and mcx silver down 5800 at 2.43 lakhs per kilogram so that's the latest on precious metals for you as well it has been volatile and currently you know gold and silver both taking a bit of a knock so you've got equities also sliding and you have got precious metals also sliding this morning and in fact if we take a look at the pre-open and i must pull that one up for you we are looking at a slide all the way down towards 23 000 on the nifty that's it we're headed for a day of selling that's pretty clear given what's happening in global markets that that's really important to track for you this morning 23080 that breaks the most immediate support level and the broader support level we'll have to wait and see how far we tumble in fact remember at the start of the year we were closer to 26 000 levels this is a 10 cut on the index that we've already seen and during the west asia war when it first kick-started we'd already hit around this mark around 23 000 now with this ai fear-led selling that we're seeing on the back of what's happening globally we're likely to now move even lower than this so that's the latest coming in we're going to track that for you in close detail with our guests also on the show but before we do that i do have to uh you know touch base on the big corporate story today the boards of sir darabji tata trust excluding the sir ratan tata trust whose meetings remain stalled due to proceedings before the maharashtra charity commissioner will meet and are expected to discuss some of the most sensitive issues facing the tata group let's go across to krishna very quickly on this krishna just before market opening and if market does open i will come back to you after reading out the opening ticks but why is today's meeting so crucial just remind our viewers [00:02:20] Speaker 2: well this comes right after the board meeting of tata sons where they took soccer the financials of the various loss making companies so it's probably expected that uh the tata trust board meeting as rightly said devoid of the sir ratan tata trust will sit together and take stock of what took place at the tata sun's board meeting but more importantly there's a pretty good chance they will take a good look at the reappointment of venus hirivasan uh as uh in terms of his continuing presence as uh tata trustee if the reappointment does not go through for some reason his position at tata sense is bold uh sense [00:02:52] Speaker 1: questions so we'll have to wait for that all right thanks for that krishna just counting down to opening bell and let me pull up those opening trades for you incredibly important today to track what's happening uh there you go on your screen we're down about a 250 264 points over one percent 23102 is where we've landed at on opening trades let's pull up uh you know the major gainers and losers and see where the pressure is hitting us nifty bank opening uh week as expected uh let's uh you know it also down about over a percent and we did see some momentum uh coming in on some of those it stocks in the middle but today you know also of course part of the complete nosedive no real implication of what's the kind of structural move we're seeing in some of those tech counters overseas uh no gainers at all on the index bel bajaj fin m&m all down over two percent right now we've got infi geofin asian paints also down one and a half percent the cuts are coming in the bigger question will be will this deepen as the day progresses it's monday morning uh we've just opened up in trade we're following what's happening across global markets this morning a major route coming in on wall street overnight on friday asia this morning it is the tech fear the ai hype bubble uh that's really cracking right now you're seeing those cuts across all of those blue chip names when it comes to the nasdaq and that's the fear that we're seeing play in here on our trade as well this morning i've got both shalindra patnagar and amrish baliga with me this uh as well amrish good morning let me first get your view on what's happening today i can't find a silver lining we've got massive fi outflows uh on top of that now we're actually seeing after 10 weeks a complete sell-off when it comes to us markets and that's really leading to of course the bleed that we're seeing across screens here in asia [00:04:39] Speaker 3: exactly and uh this was a fear over the weekend uh when i mean the gift that we closed over 50 points down it's like it's uh i mean i would say slightly better than that as of now but then uh issues are still there i think the u.s that are on accord is again uncertain oil prices especially go up monsoon that as india is concerned is expected to be the lowest in the last 11 years i think the only silver lining could be the change in capital gains for uh the foreign institutions so g6 could see some interest because i mean hopefully uh i mean the rupee will find some support uh and i think uh the other issue which is there uh when which was supporting the international market all through was the ai-related markets even there we are seeing a crack so i think the next few days could be a bit different [00:05:29] Speaker 1: right i'm really sure you know the question that everyone's asking really is at this point is how much further are we expected to see this selling everyone's been waiting for the ai bubble to crack right is is this when the bubble has burst and are we going to see a massive route is it going to continue uh you know are we going to continue to see that sell-off particularly across global screens [00:05:51] Speaker 3: that's the big question what are you hearing well i think it's a bit too early to say whether uh this ai-related bubble uh i mean is uh breaking right now or not i think it's a bit too early to say that but as well as india is concerned i mean uh because of the ai rally uh india has suffered because the funds funds have moved out they're moving out to the uh air-related markets so from that point of view i would say it would be slightly positive for india if there's an ai bubble which burst uh so i mean like as compared to the other markets especially uh korean markets our markets are very very broad and hopefully i mean going ahead with the changes uh the government is thinking about making as far as even the equity capital gains like the center it is like there's a talk on that no one is too sure on that but in case all this will happen we could i mean hope to get some fi investment well the government [00:06:50] Speaker 1: is aiming to get at least 45 to 50 billion of capital influence coming back uh to markets keeping the currency intact but uh right now we're also continuing to see massive selling pressure when it comes to the equity markets on the back of fis let me bring in shell as well shell good morning we were tracking 23 100 as the most immediate support what happens next well abha i wish this were a good [00:07:13] Speaker 4: morning but morning it is and this is what we continue with uh there's uh you know not even one single major index that's in the green advanced decline is terrible as you pointed out you know there's no gainer on the nifty there is no gainer on the nifty alpha 50 metal all 15 shares are down uh in the nsc 500 uh you have 485 shares in the green not a single gainer in the nifty 100 index so we started right at the base with this gap down probably in the first one hour of trade uh something will improve and then let us see how it goes but uh for the moment pharma and to some extent uh uh media which i really don't think as any strength is doing uh well pfizer up 3.7 percent singin up four percent uh concord bio up 1.5 but there's nothing much to talk about it's just pharma and pharma all the way the market is absolutely absolutely defensive abha absolutely i want to just i want to get amrish's view in on that [00:08:22] Speaker 1: as well but first let me just pull up the may vehicle sales coming in from fada up 9.6 percent to two and a half million passenger vehicle sales up 23 percent in may two-wheeler retail sales up seven and a half percent so cautiously optimistic right now fada's urging discipline pv dispatches for the month of june numbers for may have come in as expected but it's the bigger question is really what happens going ahead so far uh you know amrish we've not seen a hit when it comes to domestic consumption there's some expectation that those price hikes will hit along with perhaps the monsoon pressures in the next quarter uh but right now the numbers are intact but is the domestic story still strong enough to withstand or to supplement uh you know what we're seeing in terms of fi outflows [00:09:08] Speaker 3: no see i mean again everything depends on how long the us around war continues i mean if it continues for the next four five months six months or longer uh we would surely have an inflation issue issue uh i mean in india and i think that is going to affect uh the conventional story which i mean all of them have been so bullish on the conventional story in india i think that's going to take a hit because as of now it's really hitting the bottom of the pyramid but the bottom of the pyramid does not buy two wheelers and uh i mean passenger cars and four wheels and because of which we continue to see good numbers but if this issue continues i think over the next four five months we will see that hitting uh even uh uh uh consumer durables white goods automobile across i think the [00:09:57] Speaker 1: all right fair enough let's uh you know let's uh you take that forward as well in terms of what's happening in the broader markets uh shell uh you know we've been looking at certain defensive plays let's say a healthcare hospitals for example that are very very much domestic focus but you know how many of those pockets are there that perhaps investors can look at right now well abha [00:10:22] Speaker 4: if if there's no need for you to trade on a regular basis i would just say stay out there is you know no no great logic of getting into this kind of a market just continue with your monthly sips wait for this volatility to end if you are an intraday trader wait for the first one hour of trade and let us see which side the market goes whether towards the high of the day or the low of the day but my understanding is that today's gap down is done and now we'll have a [00:10:59] Speaker 1: flat to sideways trend till 3 30. flat to sideways all right well let's hope for the best because then you're at least hovering around that 23 100 mark and um you know i'm rich like you don't just perhaps uh let's go a little deeper into what's happening in the us because the reasons for selling there are very different and as you mentioned you're not convinced that the ai story is over so to say but valuations have been a normal enormously stretched so you know just coming back to that because if we do see some kind of sustained rebalancing uh you know across some of the you know headline indices in the us what's the kind of impact that that has uh for traction uh back home because how much have we actually just been running up on sentiment [00:11:48] Speaker 3: uh no see uh i mean as far as ai is concerned uh see the story is there to stay uh ai is there for reality no doubt but then as far as the markets are concerned yes uh i mean it's been over set i mean you have a cross view which has more or less doubled so it's quite natural uh that there would be a correction uh so i think uh i mean as far as the markets are concerned uh i mean especially uh the ai side of it yes i think we could see a further correction from here uh but like i said i don't think the story is over so i think this is just the beginning of ai and all of us i think we need to be quite aware as to how ai is going to affect our business it's not going to be only the software side of the sector which is affected i think it'll be across all uh i'm rich you have seen many market [00:12:35] Speaker 1: crashes come and go so let me ask you this in a nutshell like this kind of sell-off today and i like i said you've seen many of them uh where would you put it in your sort of range of uh you know red orange green how concerned are you do you feel this one is a temporary blip is this one here that's [00:12:52] Speaker 3: it's one that's going to stay longer i see again depends on your time frame if your time frame is just about a couple of days to a month i think issue i mean it's quite natural for you to panic but if your time frame is much longer you would possibly see this as an opportunity so okay that's too long so i think any sort of a correction like this i mean like like like again i would say there's not a huge correction what we're seeing today yes i think it is decent so in case it correct further utilize that to buy if you have a three four five years of the world i think all right okay i'm rich thanks so [00:13:30] Speaker 1: much for joining us this morning now the country's bullion industry floated the idea for a separate ministry of gold speaking on the sidelines of the bt sustainability summit ajay mehra of mehra sanjula also called for tax ops on gold to encourage recycling listen in we're really the the fatherless [00:13:50] Speaker 5: industry if you will and we're such a large contributor the seven percent of the gdp comes from here fifteen fifteen and a half percent i think it is uh of the merchandise exports uh we we employ 65 odd lack uh people i think 90 95 percent of msmes yet we don't have any we don't have any ministry which looks at us holistically uh in a rather and everybody's sort of looking at us through silos which is really where the many of the problems come many solutions can come if we had our policy makers [00:14:23] Speaker 6: that would enable trade so therefore ministry um we've always spoken about uh uh a steep criticism is the fact that we have have higher duty on gold and this is one of the reasons why of course a lot of indians flock to dubai to buy gold and come back around marriage around their investment portfolios around when they have money um where do you think should there be regulatory soothing in order to have [00:14:49] Speaker 5: more and more indians buy gold in india as i mentioned there as well import duty needs to be zero i can't for the life of me understand why they have an import duty at all um 60 of gold jewelry that is hand gold handmade gold jewelry that's exported from dubai is classified as indian jewelry so you're going to dubai to buy indian jewelry that's bizarre why don't we have why have we not seen despite the push by the prime minister and his team why is there no large investment in jewelry uh as fdi investment in jewelry why is there no large company coming over here to manufacture um jewelry why is that not happening why are we not playing a larger role in india we're such large consumers don't forget that there is also a large contingent contingent of indians that live overseas so before i can sell to the caucasian to the sarah to the jain if i was to sell to the sheila that lives overseas right the indian person that buys indian jewelry i can't even do that so why why why is my policy not enabling that for me that's what my larger issue always is is that policy needs to enable trade not disable trade [00:16:02] Speaker 1: all right that's why we leave it on the show today shale thanks so much for joining us we'll continue to continue to track all the action we'll be with you back at market closing right now steady at about 23146 and let's hope we continue sideways from here. That's all from us.