Sensex crashes by 461 pts on global weakness
With Thursday's fall, the index has lost a massive 1,155.52 points or 11.06 per cent in the last four trading sessions.india Updated: Jun 08, 2006 18:46 IST
Weak global markets continued to hound the Bombay Stock Exchange benchmark Sensex, which crashed by a whopping 460.95 points amid selling by mutual funds due to redemption pressure.
With Thursday's fall, the index has lost a massive 1,155.52 points or 11.06 per cent in the last four trading sessions.
The BSE-30 share index opened sharply lower at 9,664.90 and plunged to the day's low of 9200.80, but ended at 9,295.81, down 4.72 percent.
Looking back, the Sensex, which had ended at 9,397.93 on December 30, 2005, skyrocketed to touch historic intra-day high of 12,671.11 on May 11, 2006. Later, it continued to reel under heavy selling pressure from Foreign Institutional Investors (FIIs) that forced operators and retail investors to sell their holdings at any price.
Slowing US economic growth might result in interest rate amid continuous depreciation of India rupee worried foreign investors and they preferred to keep low profile on the buying side.
The situation was further aggravated when local mutual funds started offloading after facing redemption pressure as they were net sellers for past three sessions since June 2.
The National Stock Exchange's (NSE) S&P CNX Nifty also tumbled by 145.85 points or 4.76 per cent to 2,724.60 from previous close of 2,860.45.
Selling was not confined to any particular segment as all sectorial indices plunged by over 3 to 8 per cent and all 30 index-based counters finished with sharp to moderate losses.
Key benchmark indices in Hong Kong, Japan, South Korea, Taiwan, Singapore and Indonesia were down by 2.3-4.2 per cent.
Selling was so intense that the Sensex was unable to hold on to 9600-9700 level, which was said to be the most important support level by analysts, and collapsed like pack of cards, showing that the long term bearish trend has set in.
The volume of business improved further to Rs 3,682.00 crore from Rs 3,539.45 crore on Wednesday. RIL remained the top traded share with a highest turnover of Rs 377.94 crore followed by L&T (Rs 118.86 crore), RCoVL (Rs 114.02 cr), Infosys Tech (Rs 108.70 crore) and Hind Zinc (Rs 106.63 cr).
The broad-based BSE-100 Index moved down sharply by another 259.95 points to 4,721.64 from last close of 4,981.59.