Sensex dips on back of loan scam

A combination of pressure from global markets and unearthing of a series of domestic scams in November have pulled the Sensex at the Bombay Stock Exchange (BSE) down to lowest level in over ten weeks after it crossed the 21,000 mark on Diwali.

The Sensex closed at 19,136, on Friday, after losing 181.6 points or 0.9% following pressure from the real estate and infrastructure stocks that fell sharply during the day as CBI, IT and SEBI probe the involvement of around two dozen companies in the latest bribe-for-loan housing scam.

The Nifty at the National Stock Exchange fell by 47.8 points or 0.8% to close at 5,751.9.

The real estate index at BSE fell by 4.7% on Friday after falling by 5.4% on Thursday. The biggest real estate losers during the day were Ackruti (-13.4%) and Orbit Corporation (-13.1%).

Market experts, however, say there is no need to worry. “There is no systemic failure but it is a result of individual greed and hence investors should not panic,” said Aseem Dhru, CEO, HDFC Securities. But real estate stocks are something that they are cautious about and advise investors against them.

First Published: Nov 27, 2010 01:12 IST