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Sensex crashes 725 pts |
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By: Agencies |
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Date:
2008-10-07 |
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Place: Mumbai |
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The stock market cracked under pressure from the boiling global financial crisis, with the barometer index tanking 725 points to trade at its lowest level in two years.
The Sensex, which lost 529.35 points in the previous session, plunged by another 724.62, or 5.78 per cent, to close at 11,801.70.
Funds indulged in selling in consumer durables, metals, capital goods and realty stocks.
The Sensex touched the day's low of 11,732.97 and a high of 12,284.49 points.
Europe in crisis
The slide came even as the subprime lending-induced crisis threatened Europe, prompting Germany to guarantee all private bank accounts worth ¤568 billion to prevent panic withdrawals.
Questions about the effectiveness of America's $700 billion bailout package for its banks also negatively influenced the sentiment.
In Asia yesterday, China was down by 5.23 per cent, Hong Kong by 4.97 per cent, Japan by 4.25 per cent, Singapore 5.61 per cent, Korea 4.29 per cent and Taiwan 4.12 per cent.
European markets also resumed sharply lower.
Analysts, however, said that the market may bounce back tomorrow as the Reserve Bank and SEBI on Monday announced measures to ease liquidity and trading norms in derivative segment respectively.
Nifty drops too
The Nifty dropped by 215.95 points, or 5.66 per cent, at 3,602.35 after dipping to a low
of 3,581.60 during the session.
The market seemed to be bear trap as the main driver, Foreign Institutional Investors (FIIs), pulled out a whopping Rs 1,662.26 crore on October 3 as per provisional data. |
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