Sensex plunges 635 pts on panic selling
The benchmark Sensex nosedived by over 635 points at midday on the Bombay Stock Exchange on Friday to its lowest in last two weeks, as foreign funds turned net sellers after a government proposal to curb capital flows.
The 30-share Sensex, which had shed over 717 points on Thursday, sank further by 635.19 points and was ruling at 17,360.64 at 1300 hrs on heavy selling in index-related stocks.
The Securities and Exchange Board of India will decide on October 25 how to curb the 88-billion dollar investments made by unregistered investors, including hedge funds, in Indian stock markets. This level was last seen on October 4.
The National Stock Exchange index Nifty also fell by 223.55 points at 5,155.10. Nifty futures for October fell 1.4 per cent to 5,245.
The foreign investors sold a net Rs 17.8 billion on shares on Wednesday when the market experienced the largest intraday fall of over 1,700 points, the first day of selling in 19 days.