Biggest single day rout in over two months
The 30-share BSE Sensex plunged 388.78 points to 13,632.53 registering its biggest single day point fall since 12 December 2006.
On this day, the barometer index had lost 404.41 points (3%) after data showed a lower-than-expected 6.2% growth in industrial production for October 2006, sparking concerns of an economic slowdown. The 404-point slide came on the back of a 400-point fall a day before (11 December 2007) after the Reserve Bank of India (RBI)’s surprise hike of 50 basis points in the cash reserve ratio (CRR) after trading hours on 8 December 2006.
Another steep fall had occurred recently on 12 February 2007, when the Sensex had plunged 348.20 points (2.39%), to settle at 14,190.70. Data showing substantial FII inflow of Rs 560 crore in index-based futures on 9 February 2007, concerns about rise in interest rates and weak Asian markets had spooked the bourses on that day.
Another major fall came about on 19 December 2006, when the Sensex lost 349.08 points (2.54%) in a sell-off across Asian emerging markets as Thailand’s central bank
Today’s fall on the bourses was due to cautioun ahead of the budget. Today’s decline came on top of a 167-point fall on Thursday (22 February 2007). The market-breadth was quite weak today. Against 2,207 shares that declined on BSE, 411 rose. Just 36 shares were unchanged. Losers outpaced gainers by a ratio of 5.3:1.
Concerns that the government may raise short-term capital gains tax on sale of shares from the current 10% have gained currency. The securities transaction tax (STT) may also go up further. The STT was raised in the previous budget. The removal of 10% corporate surcharge may be offset by removal of certain open-ended exemptions.
Market men also expect the finance ministry to give a big impetus to agriculture and infrastructure in the budget. This will augur well for the economy.
On this day, the barometer index had lost 404.41 points (3%) after data showed a lower-than-expected 6.2% growth in industrial production for October 2006, sparking concerns of an economic slowdown. The 404-point slide came on the back of a 400-point fall a day before (11 December 2007) after the Reserve Bank of India (RBI)’s surprise hike of 50 basis points in the cash reserve ratio (CRR) after trading hours on 8 December 2006.
Another steep fall had occurred recently on 12 February 2007, when the Sensex had plunged 348.20 points (2.39%), to settle at 14,190.70. Data showing substantial FII inflow of Rs 560 crore in index-based futures on 9 February 2007, concerns about rise in interest rates and weak Asian markets had spooked the bourses on that day.
Another major fall came about on 19 December 2006, when the Sensex lost 349.08 points (2.54%) in a sell-off across Asian emerging markets as Thailand’s central bank
Today’s fall on the bourses was due to cautioun ahead of the budget. Today’s decline came on top of a 167-point fall on Thursday (22 February 2007). The market-breadth was quite weak today. Against 2,207 shares that declined on BSE, 411 rose. Just 36 shares were unchanged. Losers outpaced gainers by a ratio of 5.3:1.
Concerns that the government may raise short-term capital gains tax on sale of shares from the current 10% have gained currency. The securities transaction tax (STT) may also go up further. The STT was raised in the previous budget. The removal of 10% corporate surcharge may be offset by removal of certain open-ended exemptions.
Market men also expect the finance ministry to give a big impetus to agriculture and infrastructure in the budget. This will augur well for the economy.
Labels: sensex fall
posted by SY at 6:28 PM
0 Comments:
Post a Comment
<< Home