BSE Sensex records 2nd biggest fall

Mumbai, Aug 16: The 30-stock Bombay Stock Exchange (BSE) Sensex, considered a barometer of Indian economy, has recorded the second biggest among the seven major falls of over 500 points, when it tumbled by 642.70 points to close at 14,358.21 points today.

Market experts termed the fall as a short-term negative trend and were hopeful of the market regaining investors confidence.

''General optimism among the investors about Indian economy has not been changed. The market, which had seen uptrend in the recent past, is backed by the solid performance of corporates,'' said leading stock broker and former president of the BSE Ms Deena Mehta.

According to sources at the BSE, today's fall was the second biggest among the seven falls it had recorded of over 500 points.

The Sensex had posted the biggest fall of 826.38 points to finish at 11391.43 points on May 18, 2006 followed by 642.70 points decline today to close below the 15000 mark at 14,358.21 points, 616.73 points on April 2'2007, 615.22 points on August 1, 2007, 564.71 points May 17, 2004, 541.74 points-July 27,07 and 540.74 points on February 28, 2007.

The BSE Sensex had recorded nine falls of over 400 points during the period of 2006-2007, BSE sources said.

The latest crash in the Sensex had been linked with the 'subprime', factor, which had made a great impact on the treasury and stock markets worldwide.

Forex experts here say that foreign institutional investors (FIIs) were pulling out of the market in order to to make up their losses in U S Treasury bills.

''The subprime has had a cascading effect on Indian stock market and it could take time of atleast couple of weeks to settle the trend on the Indian bourses,'' Chief Forex Dealer Sudarshan Bhat at the Corporation Bank said.

UNI