Markets reel under a host of negative factors

Mumbai, Mar 5 (UNI) The 30-share Sensex today plunged by a whopping 516.47 points on the Bombay Stock Exchange to close at a five month low of 12,415.04 due to a host of negative factors like lack of inflows at higher levels, the surprise CRR-hike, high valuations, escalating inflation, rising interest rates and fears of an earnings slowdown in the coming quarter.

The recent defeat of the Congress in Uttarakhand and Punjab, weak global markets and profit-taking at higher levels have also plagued the market lately, market analysts pointed out.

Trading on the bourses has been extended by 45 minutes till 1615 hours starting today due to sun outage. Daily trading time has been extended up to March 19.

Trading on NSE will be stopped from 1145 hours to 1225 hours everyday during the same period, officials said.

The market remained entrenched in the red throughout the session.

Heavy selling continued for the entire day, even as markets across the globe were in a state of meltdown.

On the other hand, the S&P CNX Nifty index of the NSE also plunged by nearly 161.90 points, to finish at 3,576.85 from its previous close of 3726.75 points.

A section of the market, however, believes that the present fall offers a good buying opportunity for long-term investors. From a lifetime closing high of 14,652.09 on February 8, the Sensex has lost 14.8 per cent.

''Post the recent correction, relative valuations don't appear as expensive as they used to be. India is now the fourth most-expensive market in Asia compared to the most expensive tag it had about a month back,'' brokers said.

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