Down, down, down. That was the call given by fund managers on Wednesday. The result: stockmarkets registered their largest intra-day fall since the infamous crash on May 17, 2004. The BSE Sensex was down by 307 points to close at 11,355 while the NSE Nifty fell by 98 points to close at 3,380.
Indian shares fell by nearly 3 per cent, the biggest percentage decline in a day in nearly seven months, as foreign portfolio investors booked profits in top software services and consumer goods companies.
The rupee too tumbled and touched its lowest level against the dollar in 2006. The rupee, which was hit by dollar purchases by oil companies, fell to 45.25 – the lowest since December 28, 2005. The triple whammy was complete with the news that crude was entering spike zone, closing at about $70 (Rs 3,150) a barrel.
The fall was not confined to India. After the Wall Street’s decline on Tuesday, the entire Asian market witnessed selling pressure. The benchmark Nikkei 225 index declined by 255.58 points and the blue chip Hang Seng Index fell by 165.05 points.
In India, foreign institutional investors (FIIs), who were on a buying spree this year, turned sellers in two consecutive trading sessions. The FIIs sold $96 million and $94 million on April 7and 10 respectively.
{{/usCountry}}In India, foreign institutional investors (FIIs), who were on a buying spree this year, turned sellers in two consecutive trading sessions. The FIIs sold $96 million and $94 million on April 7and 10 respectively.
{{/usCountry}}“The correction was long overdue as market was going unidirectional. However, in the long term, the market will be bullish,” said a fund manager.