Thursday, November 20, 2008

Sensex plunges to 3-year low of 8,451

MUMBAI: The stocks benchmark Sensex fell 323 points to 8,451.01, its lowest in three years, as bears continued to prowl the market for the seventh day on Thursday.

The 30-share index recovered partially after touching an intra-day low of 8,316.39, as a fresh fall in inflation to 8.90 per cent for the week ended November 8 led to anticipation that the Reserve Bank may further ease monetary stance.

The Bombay Stock Exchange 30-share barometer recorded a net fall of 322.77 points or 3.68 per cent from its previous close. It had closed at 8,308.93 on November 10, 2005.

The broader 50-share Nifty of the National Stock Exchange also tumbled by 81.85 points or 3.11 per cent to close at 2,553.15 from its last close.

Despite the government's confidence-building exercise in the past several weeks, investors looked worried about the future of the market, as the recession continued to spread to world's major economies.

Panic-stricken investors continuously placed sell orders, with buyers few and far between.

Market players said the dismal US economic data and the Federal Reserve's decision to lower the US growth forecast for 2009 almost endorsed worries that the financial crisis could pull the global economy deeper into recession.

Asian indices ended down by about 1.7 per cent to 7.0 per cent followed by sharp falls by about 2.0 to 3.0 per cent in the European markets in their early trade.

Realty sector was the worst hit today, shedding another 8 per cent on speculation in global markets of a fresh wave in the credit crisis.

Soruce: http://timesofindia.indiatimes.com/?in_leftnav

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