Sensex plunges by 323 pts, dips to three-year low levels
In firm grips of global gloom, the markets prolonged the bear phase, with the benchmark Sensex ending at a three-year low of 8,451.01 following a seven-day-long falling streak.business Updated: Nov 20, 2008 17:49 IST
In firm grips of global gloom, the markets prolonged the bear phase, with the benchmark Sensex ending on Thursday at a three-year low of 8,451.01 following a seven-day-long falling streak.
The benchmark recovered partially after touching the intra-day low of 8,316.39 as a fresh fall in inflation to 8.90 per cent for the weekend ended November 8 led to anticipation that the Reserve Bank may announce a fresh set of monetary measures this evening.
The Bombay Stock Exchange 30-share barometer recorded a net fall of 322.77 points or 3.68 per cent from its previous close. It had closed at 8,308.93 on November 10, 2005.
The broader 50-share Nifty of the National Stock Exchange also tumbled by 81.85 points or 3.11 per cent to close at 2,553.15 from its last close.
Despite the government's confidence-building exercise in the past several weeks, investors looked worried about the future of the market, as the recession continued to spread to world's major economies.
Panic-stricken investors continuously placed sell orders, with buyers difficult to be located in a bearish market.
Market players said the dismal US economic data and the Federal Reserve's decision to lower the US growth forecast for 2009 almost endorsed worries that the financial crisis could pull the global economy deeper into recession.
Asian indices ended down by about 1.7 per cent to 7.0 per cent followed by sharp falls by about 2.0 to 3.0 per cent in the European markets in their early trade.
Realty sector was the worst hit today, shedding another 8.0 per cent on speculation in global markets of a fresh wave in the credit crisis.