Sensex tanks 467 points, closes lowest since March
The stock market benchmark Sensex today tumbled over 467 points, the most in three-months, as investors panicked after Germany banned short-selling in bonds, fanning concerns that global economic recovery may get derailed.business Updated: May 19, 2010 20:33 IST
The stock market benchmark Sensex on Wednesday tumbled over 467 points, the most in three-months, as investors panicked after Germany banned short-selling in bonds, fanning concerns that global economic recovery may get derailed.
Germany's move to curb market volatility hit investor sentiment, even as Euro fell to a four-year low against the dollar on fears that the debt crisis in the Euro zone could hamper growth.
The 30-share Sensex, which remained bearish throughout the session, plunged 467.27 points to 16,408.49, the steepest fall since February 25. The benchmark touched an intra-day low of 16,373.32 points.
Similarly, broad-based National Stock Exchange index Nifty dipped below 5,000 points level to end at 4,919.65, showing a hefty fall of 146.55. The Nifty touched the day's low of 4,908.15 points.
The market which had been passing through a rough patch following weakening Asian trend, fell further after a weak start in European stock markets this afternoon.
Foreign funds and investors turned aggressive sellers after Germany banned speculators from short selling government bonds and financial institutions, fanning concern that the global economic recovery may be derailed.
Investors confidence was further dented after the German restrictions triggered a drop in the Euro and commodities world-wide.
The Euro has fallen over seven per cent against the dollar this month and over 14 per cent in a year.
London's benchmark FTSE 100 index fell 1.49 per cent to 5,228.34 points, Frankfurt's DAX 30 one per cent to 6,091.85 points and Paris' CAC 40 2.37 per cent to 3,531.66.
In the 30-BSE index components, 27 closed with losses while three ended higher. All the sectoral indices remained in negative zone.