Sensex dips 216 points, closes at 14,141.52
The Sensex, which plunged by nearly 578 points during the day, remained volatile before ending with a loss of 216.69 points.business Updated: Aug 17, 2007 17:44 IST
Tumbling Asian stock markets caused the wave of panic selling in the domestic markets to continue and the benchmark Sensex to lose over 216 points on Friday.
The Sensex, which plunged by nearly 578 points during the day, remained volatile before ending with a loss of 216.69 points, or 1.5 per cent at 14,141.52, after touching a level of 13,779.88. It had suffered a 642-point fall on Thursday.
"I think correction is on its last leg and there could be a further correction of 400 to 500 points from the current level," said Motilal Oswal, chairman of Motilal Oswal Financial. "It all depends on the US stock markets. It is a black-box and how much deep it is nobody knows," he added.
The major fall in the market came at mid-session on reports of a fall in Japanese stocks followed by a similar weakness in other Asian markets. A sharp reversal was seen towards the end as the London Stock Market revealed some gains at the opening.
Similarly, the wide-based National Stock Exchange index Nifty moved between 4,002.20 and 4,171.10 points before ending with a loss of 70.55 points at 4,108.05.
As the market remained in bearish mood, the metal index suffered the most, losing 488 points at 9,811.61, followed by PSU index by 186.87 points at 6,542.63. Capital goods index lost 184.66 points at 12,029.90 and auto index by 101.32 points at 4,560.85.
"Investor sentiment is still nervous, beaten by Thursday's losses. We expect a further sell-off as investors would not keep positions open ahead of the weekend," said a Mumbai-based broker.
"There is a great aversion to risk right now," said Rajiv Malik, who runs brokerage firm - RNM Financial Services.