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Sensex heading towards 5,000-level?

business Updated: Oct 24, 2008 20:18 IST
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With the stock market benchmark Sensex breaking over a dozen thousand-point milestones in less than a year of downslide, the market experts now believe that even a fall below 5,000-point mark could not be ruled out.

The Sensex on Friday fell below 9,000-point mark for the first time in about two and half years to close at 8,701.07 points, but the experts said the bottom of the current bear-rampage on the bourses is yet to come.

After today's fall of 1,071 points -- steepest ever after a 1,408-point crash on January 21 -- the Sensex has plummeted by as many as 12,500 points from its record high of 21,206.77 points scaled on January 10.

The experts said that more pain could be in store for the Indian market as there are no signs of recovery in global markets and the panic has spread even further after reports of economic giants like the US and the UK heading towards an imminent recession.

"In the current scenario, everything is possible. The current free-fall in the market and the rate of fall can witness the 5,000 levels in another six months," Taurus Mutual Fund Managing Director RK Gupta said.

There could be slight recovery in the coming weeks, but only to be followed by further losses, Gupta said, adding that as long as the bailout does not come for the global economy as a whole, the concerns of recession would continue pulling domestic market down.

"There is sheer panic selling and frustration in the market. No body knows where is the end and when it will end. However, one thing is clear, the bottom has not yet been established," Kejriwal Research and Investment Services (KRIS) official Arun Kejriwal said.

Bonanza Portfolio's President (Research) PK Agarwal also said the market has not touched its bottom as yet, although it could be close to that level.