Sensex tumbles 435 pts in steep correction
The benchmark index of BSE on Wednesday fell 2.9 per cent or 435 points to 14,522 points to close at its lowest level in three weeks on profit-booking and global cues.business Updated: Jun 17, 2009 21:27 IST
The benchmark index of Bombay Stock Exchange (BSE) on Wednesday fell 2.9 per cent or 435 points to 14,522 points to close at its lowest level in three weeks on profit-booking and global cues. Market players expect a further correction of around 3 per cent in the next couple of days.
The National Stock Exchange’s 50-share Nifty declined 3.5 per cent or 161 points to close at 4,356 points.
While some market players blamed US president Barak Obama’s remark on the state of US economy and the unemployment rate for the fall, the correction is also considered long overdue, as it follows a 7,000-point rally on the Sensex that triggered a mood of market consolidation.
The US president had said that the economy would take more time to recover and the unemployment rate in the US was likely to hit 10 per cent mark.
“The global cue had not much role to play in the fall,” said Hitesh Agrawal, Head of Research, Angel Broking.
“We saw a sharp correction, and there is likely to be another of around 2-3 per cent before buying emerges,” said Agrawal, adding, “Investors should look at it as an opportunity to invest.”
Reliance Industries Ltd. was the biggest loser as it fell for the third day since the Bombay High Court ruled against it on supplying gas to Reliance Natural Resources Ltd.