Fed oxygen for sinking Sensex
"IF YOU won't take, I'll pay cash," begged small investor Mahesh Bhatt. He wanted to buy Reliance Natural Resources and L&T shares. But there were no brokers willingng to put his orders through.
Dalal Street had shut down. Investors had lost over Rs 6.5 lakh crore within 60 seconds of the market opening shop on Tuesday. Pre-market sell orders had sent the benchmark BSE Sensex plunging by over 11 per cent, triggering the circuit filter, the exchange's safety fuse.
All trade halted and the system automatically locked all broker terminals. Within seconds, the National Stock Exchange had also hit circuit freeze, as the 50-share Nifty index fell 12.10 per cent to 4,578 points.
Finance Minister P. Chidambaram's appeal for calm from Delhi and his reassurance about the health of the Indian economy helped markets recover when the circuit freeze lifted at 10.57 am. But that was short-lived, as the Sensex dipped to the day's low of 15,332 by I1.53 am. The pain should last one more day and loss of may be another 1.000 points. Then it should stablise,'" said R. Venkataraman, Exceutive Director, India Infoline. After the storm, came some calm. US Federal Reservee chief Ben Bernanke cut key lending rates by 0.75 per cent before US markets opened. London's FTSE Index, which was already trading, immediately jumped 3.5 per cent after the announcement. New York Stock Exchange's Dow Jones index. which opened after the rate out, lost 457.9 points, only to claw back. Hopes have
To read the full story, click here..
To read the ePaper, visit : http://epaper.hindustantimes.com/
Dalal Street had shut down. Investors had lost over Rs 6.5 lakh crore within 60 seconds of the market opening shop on Tuesday. Pre-market sell orders had sent the benchmark BSE Sensex plunging by over 11 per cent, triggering the circuit filter, the exchange's safety fuse.
All trade halted and the system automatically locked all broker terminals. Within seconds, the National Stock Exchange had also hit circuit freeze, as the 50-share Nifty index fell 12.10 per cent to 4,578 points.
Finance Minister P. Chidambaram's appeal for calm from Delhi and his reassurance about the health of the Indian economy helped markets recover when the circuit freeze lifted at 10.57 am. But that was short-lived, as the Sensex dipped to the day's low of 15,332 by I1.53 am. The pain should last one more day and loss of may be another 1.000 points. Then it should stablise,'" said R. Venkataraman, Exceutive Director, India Infoline. After the storm, came some calm. US Federal Reservee chief Ben Bernanke cut key lending rates by 0.75 per cent before US markets opened. London's FTSE Index, which was already trading, immediately jumped 3.5 per cent after the announcement. New York Stock Exchange's Dow Jones index. which opened after the rate out, lost 457.9 points, only to claw back. Hopes have
To read the full story, click here..
To read the ePaper, visit : http://epaper.hindustantimes.com/
Labels: Dalal Street, Sensex crashes on Tuesday, US Federal Reserve rate decrease
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11:58 AM
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