The stock market re-opened after trading was suspended for one hour at the Bombay Stock Exchange after the benchmark Sensex fell to the low of 15,576.30 within minutes of opening, crossing the circuit limit of 10 per cent.
The Sensex is currently trading at 17,068, down 536 points from the previous close. Nifty is at 5017, down 191 points. NSE advance-decline ratio is at 1:12.
There was some stability seen in the markets upon re-opening. The Sensex and the NSE Nifty were still down 4% and 5% respectively, but the recovery has brought some semblance of sanity to the stock markets.
Early shock
On Monday, the 30-share barometer tumbled by 1,408 points on concerns regarding the American economy going into recession.
The market opened at 16,884.09 points. At the time suspension, the Sensex was quoted at 15,576.30 points, plunging 11.53 per cent from Monday's close.
A similar trend was witnessed at the National Stock Exchange, whose barometer Nifty opened at 5,203.35, and later spiralled downward to a low of 4,569.50, a slide of 12.1 per cent. It was last trading at 4,578.35 points.
If the Nifty falls another 306.93 points and the Sensex another 1,326.63 after the market opens at 10.55AM, then trading will be halted for another two hours, reported NDTV Profit.
This is the fourth instance that the market has hit 10% lower circuit, said a CNBC-TV18 report. The first time was during the Harshad Mehta scam in 1992, then in 2004, when the NDA lost to the Congress and in October 2007, when the P-Note issue was on. The Sensex is down 25%, Nifty, down 28% and CNX Midcap is down 31% from its life-time highs.
Don't panic, says FM
Finance Minsiter P Chidambaram said that investors should not panic as the fundamentals of the Indian economy are still strong. The woes of the Western economies should not be taken as an indication of a weak Indian economy, he said.
The finance minister has said he is hopeful "that there would be a new beginning for the markets."
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