The Bombay Stock Exchange’s 30-stock benchmark index, the Sensex, succumbed to weak sentiments and fell by 386 points or 3.8 per cent on Thursday to go below 10,000 level again, after trading above the 10,000 mark for three days.
The fall is in line with market performances worldwide as both Asian and European stock markets registered fall in their value. Seoul Composite fell by 7.6 per cent, followed by Hang Seng of Hong Kong and Nikkei 225 of Japan by 7.1 and 6.5 per cent respectively.
Thursday’s trading session remained very volatile as the market recovered from its initial fall in the second half, only to plunge again in the closing hour due to lack of strong support.
The Metal Index at the Bombay Stock Exchange led the fall, declining by 8.4 per cent under pressure from the falling commodity prices worldwide. Tata Steel fell by 13.7 per cent and Sterlite Industries by 11.3 per cent.
Analysts are of the view that the fall is a result of an absence of support level in the market and the weakness prevailing in the global markets, which had rallied for just a day riding on the US presidential election result.
“The short covering in the market is over and there are no support levels in,” said Hitesh Agarwal, head research, Angel Broking.
The market also witnessed profit booking on Wednesday and Thursday after the sharp rally that saw the market gain 25 per cent in five trading sessions.
Analysts expect the market to remain weak for now until a strong positive sentiment sets in the market.