Sensex dips by 365.67 pts on panic selling
Mumbai, Apr 7: Panic selling today led to the Bombay Stock Exchange (BSE) Sensex nose dive by 365.67 points to 11,564.99, after rising close to the 12,000 mark at 11,930 during the intra-day trading.
The Sensex finally closed 157.46 points down at 11,589.44 with a loss of 1.34 per cent.
''Profit booking should be there and market should go down by at least 1,000 points,'' said a trader and investor while reacting to today's development.
The current bull run has been mind blowing and today the key index opened 100 points up and rose further by 185 points in the morning which later resulted in profit booking.
''The Sensex was rising in a low volume trade just becuase there were more buyers and fewer sellers,'' a leading analyst said.
In the moring, the benchmark index of the BSE opened higher by 100 points at 11,845.13 and later touched a new all-time high of 11,930.66 points with a gain of 185 points.
The Sensex had closed at 11,746.90 points on Wednesday.
The National Stock Exchange (NSE) S&P CNX Nifty index also dropped by 109.25 points in the afternoon after rising to an all time high of 3,555.50. The Nifty finally closed at 3,454.80 with a loss of 56.10 points as against the last close of 3,510.90.
The BSE sectoral indices that fell sharply this afternoon were Bankex (3.13 per cent), FMCG (2.49 per cent), Health Care (2.45 per cent) and Automobile (1.91 per cent).
BSE Consumer Durables and Metal index managed to close in the green.
The BSE Smallcap index was down by 0.97 per cent and BSE midcap index was down by 1.43 per cent.
Index heavy weights Reliance, ONGC, TCS, Hindustan Lever ITC registered significant losses varying from 0.84 per cent to 2.65 per cent.
Among the top losers on the Sensex were Satyam Computers,Tata Motors, HDFC Bank, Ranbaxy, ICICI Bank, Wipro, Cipla, SBI, HLL, and Hero Honda falling by 4.80 to 2.63 per cent.
Securities and Exchange Board of India (SEBI) has begun an inquiry into today's markets fall and has sought data on the trading from the stock exchanges, according to sources. But, the earlier in the day, one of the premier research firm CLSA cautioned about decreasing safety margins in the Indian IT industry which triggered the sharp fall in the afternoon.
CLSA provides brokerage and investment banking related services.
The soaring crude oil prices above USD 67 per barrel also seemed to have impacted the global markets today which had a mixed day with the US market indices NYSE(-0.11 per cent) and Dow Jones(-0.21 peer cent) closing in the red while the technology index Nasdaq closed flat with a gain of 0.06 per cent.
Japanese market index Nikkei closed 0.42 per cent up at record 17,563 points.