Sensex tumbles below 10k level
The BSE benchmark Sensex once again dipped below 10,000 points level after losing over 385 points on the funds' selling spree on concerns of deepening global recession.business Updated: Nov 06, 2008 16:57 IST
The Bombay Stock Exchange benchmark Sensex on Thursday once again dipped below 10,000 points level after losing over 385 points on the funds' selling spree on concerns of deepening global recession fears, coupled with a moderate rise in inflation rate.
The Sensex, which had lost 511 points in previous day's trading, fell by another 385.79 points at 9,734.22 after touching the day's low of 9,635.22, following a steep fall in blue-chip stocks led by Reliance Industries.
The wide-based National Stock Exchange index Nifty also fell below 2,900 points level to trade at 2,892.65, reflecting a loss of 102.30 points. It hit the lowest level of 2,860.25 points during the day.
Inflation rose to 10.72 per cent for the week ended October 25 on account of higher prices of cereals and vegetables.
Besides, a weakening trend in global stock markets influenced by global financial crisis fears also dampened the trading sentiment on the domestic bourses.
While heavyweight stocks led by Reliance Industries, Infosys Technologies and ICICI Bank fell sharply on brisk selling, a smart recovery in realty and healthcare sector stocks saved the market from further fall.
"The stock markets are trapped in a global sell-off on fears of a deep recession in the US," said Rajiv Malik of RNM Financial Services.
He said the market was still struggling to recover as even the last cushion of short-covering was not visible after most of the pending long positions were cleared in view of the volatile movements.