The stock markets on Monday made a dramatic reversal and wiped out most of Friday's gains as high interest rates and oil prices caused high volatility and dragged the Bombay Stock Exchange's benchmark Sensex 334 points down to 9,476.15.
The market nose-dived as retail investors and domestic funds once again turned heavy sellers, following an indication that relentless rise in oil prices and hardening of interest ratres worldwide would have an impact on the countries budget.
The Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) had scored highest ever singe-day rise of 515 points after suffering heavy losses of 1,156 points in four days between June 5 and 8.
The Sensex saw a high level of volatility after opening firm at 9,858.47 points and later fluctuated wildly in a range of 9,859.38 and 9,428.03 points before ending the day at 9,476.15 from last weekend's close of 9,810.46, a net loss of 334.31 points or 3.41 per cent.
Similarly, the National Stock Exchange's (NSE) S&P CNX Nifty too dropped by 89.45 points or 3.12 per cent to 2,776.85 from previous close of 2,866.30.
While Monday's fall was largely attributed to higher interest rates worldover, investors also blamed reports about the market regulator sebi's proposed plans on some policy moves, which market players said, might affect the interest of broking fraternity.
{{/usCountry}}While Monday's fall was largely attributed to higher interest rates worldover, investors also blamed reports about the market regulator sebi's proposed plans on some policy moves, which market players said, might affect the interest of broking fraternity.
{{/usCountry}}Retail investors were unwilling to take any risk in the prevailing market situation and pressed sales at the day's higher levels, they added.