Sensex crashes 368 points
Huge profit taking by foreign investors and funds in bluechips triggers the biggest crash since July.india Updated: Sep 11, 2006 20:11 IST
Indian share markets crashed on Monday and the barometer index plunged 367.97 points, as investors resorted to massive profit taking after the bourses had ended higher in each of the seven preceding weeks.
Shortly before the close, the sensitive index, Sensex, of the Bombay Stock Exchange (BSE) had crashed nearly 413 points. The Sensex closed the day at 11,550. 69 points, down 3.09 per cent.
The sensitive index of the Bombay Stock Exchange (BSE) was ruling at 11,593.20 points at a little after 3 p.m. - which was lower by 325.45 points, or 2.73 percent, over the previous day's close at 11,918.65 points.
In the past month, the barometer index has risen by 775 points, or almost seven percent, and the gain has been an impressive 1,833 points, or 18 percent, during the past seven weeks, data with the exchange showed.
"After sustained rising streak over the past two months, there was bound to be some correction. The impact on the Sensex has been more since profit taking was much larger in heavyweight stocks," an analyst with a brokerage here said.
The markets opened on a positive note Monday with the Sensex at 11,959 points and moved up to 11,971 points soon after, which was barely 30 points short of the psychologically important 12,000-point mark.
But barely about a few minutes into trading, the slide began, bringing the index crashing down.