Sensex hits the floor, and digging
IN THE absence of any buyers, bears took complete charge of the market on Thursday, pushing down the BSE Sensex by another 461 points (4.7 per cent).india Updated: Jun 09, 2006 15:08 IST
IN THE absence of any buyers, bears took complete charge of the market on Thursday, pushing down the BSE Sensex by another 461 points (4.7 per cent).
Within an hour of trading, the Sensex, which opened at 9,664.9 points against Wednesday's close of 9,756.76 points, dipped to the day's low of 9,200.8 points, an intra-day fall of 556 points. It finally closed at 9,295.81 points. In the last four trading sessions, the Sensex has lost 1,156 points or 11 per cent.
The story was the same outside India. Markets across Europe and Asia crashed after fresh overnight losses in the US markets.
With such a sharp correction in India, market pundits said the Sensex has almost hit the bottom and the trend may reverse soon. The current fall is a reflection of the global trend as the interest rates have started hardening, said a fund manager.
They allayed fears of redemption pressure on the mutual funds, saying there is net accrual, albeit marginally, to many of the funds in June. Although, net asset value of all mutual funds has declined, it is much lower than the market as they have wide portfolios.
Upshot: Your MF investment is safe. So far. IPOs chickening out?