Sensex crashes by 327 points
Bear operators once again mauled the BSE, which closed at a three-and-half month low of 10,071.42. The bubble burstindia Updated: Jun 01, 2006 17:11 IST
Bear operators once again mauled the Bombay Stock Exchange and ripped off another 327.19 points from the benchmark index, which closed at a three-and-half month low of 10,071.42.
After starting on a strong note due to firm Wall Street advices and a spate of positive news, share prices began collapsing like a house of cards on lack of buying support even at lower levels, dealers said.
According to a foreign brokerage firm, though the Indian growth story is intact, pulling out of emerging markets by Foreign Institutional Investors (FIIs) on concerns over hike in US interest rates weighed negatively and the sentiment would remain bearish for couple of weeks.
Right from the onset, the BSE-30 share sensitive index (Sensex) displayed a firm trend opening with a yawning upside gap at 10,472.46 from previous close of 10,398.61 and immediately touched a high of 10,597.23, showing a initial surge of nearly 199 points.
Later, it met with strong resistance following by heavy selling by wary operators and retail investors, who generally preferred to sell at every rise to play safe owing to recent high volatility, and touched a low of 10,017.82 before ending at 10,071.42, a steep fall of 327.19 points or 3.15 per cent.
Similarly, the National Stock Exchange's (NSE) S&P CNX Nifty crashed by 108.80 points to close at 2,962.25 from previous close of 3,071.05.
Selling was not confined to any particular sector as all segments registered sharp losses.