Indian Stock Market, BSE Sensex below 9000. it close at 8701.
After infusing Rs 1,85,000 crore liquidity into the banking system this month, RBI on Friday
surprised the market by keeping its key rates unchanged in the mid-term review of annual
monetary policy, which lowered economic growth projections to 7.5-8% for 2008-09.
Soon after the RBI announced its credit policy, markets witnessed one of the worst trading
sessions following meltdown in global markets on concerns of slowing global economy and
recession.
Sensex lost 1070.63 points to close at 8,701.07, down 10.96%. It is the lowest closing for
Sensex since November 24, 2005.
On the other hand, Nifty ended at 2584.00, down 12.20%.
BSE Midcap closed 8.38 per cent lower and BSE Smallcap Index ended 7.66 per cent down.
DLF (-23.96%), Ranbaxy Laboratories (-17.83%), Hindalco Industries (-17.82%), Tata
Motors (-16.54%), Reliance Industries (-16.44%) and Mahindra & Mahindra (-16.04%)
were the worst hit.
None of the stocks in the 30-share index could survive the meltdown.
Market breadth on BSE collapsed with 2322 declines against 260 advances.
Market breadth was extremely negative on the BSE with 2322 declines and 260 advances.
With the global commodity and oil prices cooling, the central bank kept the inflation
projection unchanged at 7% by end-March but emphasised that inflation continued to be a
matter of concern requiring constant “vigil.”
Outlining the monetary measures, the policy said the benchmark bank rate has been kept
unchanged at 6 per cent, repo rate at 8%, reverse repo at 6 per cent and CRR at 6.5%.
This time, however, the more than 10 percent fall on Friday happened after noon so the lower
circuit filter did not come into play only when the fall is 15 percent or more.
“As far as I can remember this is the largest fall in percentage terms in recent history,” said
Jagannadham Thunuguntla, head of the capital markets arm of India's fourth largest share
brokerage firm, the Delhi-based SMC Group.
In percentage terms, the fall of the broader 50-share S&P CNX Nifty index of the National Stock
Exchange (NSE) was even higher.
The Nifty closed at 2584.00, down 359.15 points or 12.20 percent from its previous close
Thursday at 2943.15 points.
The BSE Mid Cap index finished at 3,095.68 points, down 283.04 points or 8.38 percent from
its previous close Thursday at 3,378.72 points.
The BSE Small Cap index closed at 3,661.83, down 303.87 points or 7.66 percent from its
previous close Thursday at 3,965.70 points.