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Market closes with largest ever fall of 564 pts
Mumbai, May 17: In the worst ever bloodbath in the history of Indian bourses, the Sensex today hurtled down to a low of 4227.50 with a record intra-day swing of 793 points following uncertainty over the economic reforms, forcing the BSE to suspend trading twice to contain abnormal volatility and wiping out a market cap of over Rs 1,24,000 crore.
Mumbai, May 17: In the worst ever bloodbath in the history of Indian bourses, the Sensex today hurtled down to a low of 4227.50 with a record intra-day swing of 793 points following uncertainty over the economic reforms, forcing the BSE to suspend trading twice to contain abnormal volatility and wiping out a market cap of over Rs 1,24,000 crore.
Plunging by 565 points in a single session, the Sensex`s steep decline is the second largest after 1992 stock scam when it collapsed by 570.42 points or 12.77 per cent.
The BSE benchmark 30-share index opened at 5020.89 and plummeted to the intra-day low at 4227.50 before ending the day at 4505.16, a net loss of 564.71 points or 11.14 per cent.
On a "Black Monday" the market witnessed an unprecedented collapse of 553.29 points within minutes of the opening bell, prompting the BSE to suspend trading at 10:20 am for an hour and again at 11:20 am for two hours as the Sensex crashed by another huge 233.60 points.
There was near panic all over as FIIs started pulling out and local institutions stepped in to halt the reversals as the Congress leader Manmohan Singh allayed fears over reform policies of the new government, particularly over disinvestment and warning severe action against manipulators.
The statement had some soothing effect on the Sensex when the trading re-commenced at 1:15 p m with a smart recovery of 331 points from the early low of 4227.50.
The market has been battered continuously since May 10 with the Sensex falling by 1164.50 points in the last six sessions, eroding investors wealth of over Rs 2,96,000 crore.
The Reserve Bank of India also kept a close watch on the stock markets and said that it was in touch with the banks to ensure that payment obligations were met smoothly.
Over 100 brokers held demonstrations at Dalal Street even as the BSE officials were holding discussions with the market watchdog, the Securities and Exchange Board of India (SEBI).
BSE and NSE had suspended trading according to the guidelines to contain "volatility," a senior Sebi official told news agecnies, adding that "the market has been placed on high alert and we are closely monitoring the developments, including the sharp drop in markets."
The partial recovery after 1.15 pm, when the market re-commenced for the third time, was largely credited to the statement by Congress leader Manmohan Singh that the party, which is all set to form the new government at the Centre, is not against privatisation if it is in the national interest and that the government would do whatever necessary to grow the markets.
Indian financial institutions led by the Unit Trust of India and Life Insurance Corporation (LIC) were believed to be heavy buyers in blue-chip counters.
Except for Zee Telefilms, which was exceptionally firm on heavy informed buying, all other index-based counters recorded huge losses due to heavy sell-off.
Bureau Report
The BSE benchmark 30-share index opened at 5020.89 and plummeted to the intra-day low at 4227.50 before ending the day at 4505.16, a net loss of 564.71 points or 11.14 per cent.
On a "Black Monday" the market witnessed an unprecedented collapse of 553.29 points within minutes of the opening bell, prompting the BSE to suspend trading at 10:20 am for an hour and again at 11:20 am for two hours as the Sensex crashed by another huge 233.60 points.
There was near panic all over as FIIs started pulling out and local institutions stepped in to halt the reversals as the Congress leader Manmohan Singh allayed fears over reform policies of the new government, particularly over disinvestment and warning severe action against manipulators.
The statement had some soothing effect on the Sensex when the trading re-commenced at 1:15 p m with a smart recovery of 331 points from the early low of 4227.50.
The market has been battered continuously since May 10 with the Sensex falling by 1164.50 points in the last six sessions, eroding investors wealth of over Rs 2,96,000 crore.
The Reserve Bank of India also kept a close watch on the stock markets and said that it was in touch with the banks to ensure that payment obligations were met smoothly.
Over 100 brokers held demonstrations at Dalal Street even as the BSE officials were holding discussions with the market watchdog, the Securities and Exchange Board of India (SEBI).
BSE and NSE had suspended trading according to the guidelines to contain "volatility," a senior Sebi official told news agecnies, adding that "the market has been placed on high alert and we are closely monitoring the developments, including the sharp drop in markets."
The partial recovery after 1.15 pm, when the market re-commenced for the third time, was largely credited to the statement by Congress leader Manmohan Singh that the party, which is all set to form the new government at the Centre, is not against privatisation if it is in the national interest and that the government would do whatever necessary to grow the markets.
Indian financial institutions led by the Unit Trust of India and Life Insurance Corporation (LIC) were believed to be heavy buyers in blue-chip counters.
Except for Zee Telefilms, which was exceptionally firm on heavy informed buying, all other index-based counters recorded huge losses due to heavy sell-off.
Bureau Report