Stable interest rates fail to boost stock markets
The Bombay Stock Exchange benchmark Sensex plunged by over 109 points in the afternoon.india Updated: Oct 31, 2006 14:27 IST
The Bombay Stock Exchange benchmark Sensex plunged by over 109 points in the afternoon trading on frantic selling by funds despite RBI keeping all key interest rates stable.
The Sensex dropped by 109.05 points to 12,915.21 as index heavy stocks fell sharply on profit selling by market participants.
Similarly, the wide-based National Stock Exchange index Nifty lost 37.65 points at 3,731.45 at 1.00 pm.
Marketmen said the selling was purely of a technical correction after the rise of Sensex to the 13K high level on Monday.
They said a surge in share prices in the last few trading sessions, including in early trading on Tuesday, attracted selling at existing higher levels.