Friday close: Sensex down 232 points
Renewed worries about US subprime mortgage crisis take a heavy toll on the domestic stock market again as the benchmark index falls sharply amid high level of volatility.business Updated: Aug 10, 2007 18:30 IST
Renewed worries about US subprime mortgage crisis took a heavy toll on the domestic stock market again as the benchmark BSE Sensex on Friday fell sharply by 232 points amid high level of volatility.
The market went into a tailspin and lost 529.26 points to hit the day's low of 14,570.89 within minutes of resumption of trading following a global meltdown triggered by fears that the US subprime losses will spread further.
The key indices, however, recovered major part of losses on heavy purchases in front-line stocks by foreign funds as well as domestic financial institutions.
Finally, the Bombay Stock Exchange barometer ended the day at 14,868.25, a net fall of 231.90 points or 1.54 per cent from yesterday's close of 15,100.15.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) slid 69.85 points or 1.59 per cent to close at 4,333.35 from previous close of 4,403.20.
Attributing the fall in global stocks to worries about the US subprime mortgage sector, market players said credit fears re-emerged after European bank BNP Paribas suspended withdrawals from three investment funds in moves linked to high-risk property loans in the United States.
The Dow Jones Industrial Average yesterday was down 2.83 per cent and the Nasdaq Composite Index 2.16 per cent.
Among Asian markets, Hong Kong's key index Hang Seng lost 646.65 points, Japan's Nikkei 406.51 points, Singapore ST 53.99 points, Taiwan Weighted 251.29 points and Korea's Kospi by 80.19 points.