Sensex registers third largest fall
The BSE Sensex lost 463 points due to rush of selling by investors following a meltdown in metal prices.india Updated: May 15, 2006 21:28 IST
The bottom fell out of the country's stock market, whose benchmark Sensex lost 463 points on Monday, as there was a rush of selling by investors following a meltdown in metal prices as also key global markets.
The fall, the third largest in the history of the Bombay Stock Exchange, took the market bellwether to a one month low of 11,822.20 points and evoked memories of "black Monday".
The Sensex had registered the biggest ever fall of 570 points on April 28, 1992, which happened to be a Monday. It fell by 565 points, its second biggest fall, on May 17, 2004, also on a Monday.
The 30-share Sensitive Index (Sensex) crumpled to the day's low of 11,770.76 before ending the day at 11,822.20 from Friday's close of 12,285.11, a fall of 462.91 points or 3.77 per cent.
The index has adjusted to a downward correction by a huge 790 points in the three consecutive trading sessions.
The National Stock Exchange's (NSE) S&P CNX Nifty also nose-dived by 147.10 points or 4.03 per cent to close at 3,502.95 from last weekend's close of 3,650.05.
The downward spiral was largely attributed to a crash in metal prices on the Multi Commodity Exchange (MCX) during the day as well as the government's warning to cement companies to control rising prices.
Copper, Zinc, Aluminium and other metal prices dropped sharply in line with a worldwide crash in metal prices.
The market fell even as global markets went into a tailspin. Hang Seng in Hong Kong was down 432 points, the Nikkei in Tokyo and FTSE 100 in London were both down by 115 points, Australia's S&P/ASK 200 index was lower by 1.8 per cent and South Korea's Kospi by 2.2 per cent.
First Published: May 15, 2006 10:25 IST