Profit-booking takes Sensex down 3.2%
The benchmark Sensex of BSE fell 370 points or 3.25 per cent to 11,001 points as investors booked profits ahead of the expiry of the current derivatives contract on Wednesday and the May Day weekend that follows.
Considerations of a global alert on swine flu affected sentiment, but not clearly. The S&P CNX Nifty was down 107.6 points or 3.1 per cent at 3362 points at close. “The market ran out of steam on Tuesday after recording gains for seven weeks. This looks like a correction,” said Avinash Gupta, Assistant Vice-President for equity research at Bonanza Portfolio Limited.
World stock markets fell on fears that a swine flu pandemic could derail a global economic recovery as the World Health Organisation said it was too late to contain the virus and urged countries to do what they can to mitigate the effects.
Asian markets’ also plunged, ostensibly on flu fears. The Japanese market led the plunge with a 2.67 per cent drop while Hong Kong fell 1.92 per cent.