Sensex crashes by over 1,112 points

Mumbai, May 22 : The 30-stock-Sensex of the Bombay Stock Exchange (BSE) tumbled by 1,111.70 points or 10.16 per cent while S&P CNX Nifty of the National Stock Exhchnage (NSE) lost 350 points at 2,896 within few hours of trading today, forcing the bourses to suspend trading till 1300 hrs.

The trading at both the leading bourses were automatically halted at 1200 hrs, following sharp fall of over 10 per cent, as the foreign institutional investros (FIIs) and major operators continued their selling spree today, dealers said.

This is the second time in history of BSE, that trading has been halted by circuit-breaker due to an intra-day fall of 10 per cent.

Earlier, on May 17, 2004, trading on the BSE and NSE was halted as the indices recorded over 10 per cent fall on selling spree, in view of uncertainity over formation of Government at the Centre.

Trading would commence again at 1300 hrs, and may be halted again, if the fall in the indices continued further and if adds another five per cent fall, market sources said.

The markets were in the red since the last couple of trading sessions on the issue of likely imposition of tax by on the FIIs. The Sensex had already recorded a fall of 1,346 points or 11 per cent during the last week. The S&P CNX Nifty at the NSE, too, has recorded a steep decline of 403 points or 11 per cent.

Though Fiannce Minister P Chidambaram repreatedly clarified the Government's stand on the FIIs, markets continued their slide on sustained selling spree from the major players, in reaction to the statement by Central Board of Direct Taxes seeking to dispel suggestions that its draft circular was ambiguous.

Today's was the worst-ever crash recorded by the stock market, on the second anniversary of the Congress-led UPA Government at the Centre.

UNI