Sensex dips 2.9%, pausing in post-poll rally
The Sensex witnessed its biggest fall since the dizzy rise triggered by UPA’s election results last month as it plunged 438 points, or 2.9 per cent, to close below the 15,000-mark at 14,665.9. HT Correspondent reports.business Updated: Jun 08, 2009 23:27 IST
The Sensex on Monday witnessed its biggest fall since the dizzy rise triggered by UPA’s election results last month as it plunged 438 points, or 2.9 per cent, to close below the 15,000-mark at 14,665.9. The fall in the 30-share benchmark stock index came after a surge of 2,930 points over 15 trading days following the poll verdict.
The 50-share Nifty of the National Stock Exchange fell 3.4 per cent to close at 4,429. Market participants saw the decline as a healthy, expected correction in the market.
“We moved to 15,000 without any significant correction and this was a healthy one,” said Alex Mathew, head of research, Geojit BNP Paribas Financial Services.
“The market was in an overbought position and profit booking was expected and it came through the FIIs (foreign institutional investors) and the insurance companies,” said Amitabh Chakraborty, president equities, Religare Enterprises. “The Asian markets were also weak and they to led to the correction.”
The correction in the mid-cap and the small-cap indices at the BSE was much steeper as the two fell by 5.5 and 5.8 per cent respectively.
Real estate showed a steeper fall, with the BSE’s sectoral index plunging 10.5 per cent. Unitech’s shares plunged 13.8 per cent while DLF sank 10.3 per cent.
“Markets will see an upward movement as the sentiments are very positive due to budget,” said Chakraborty.