Sensex Touched Its Two Year Low, Near 10000 Mark

Author: MP Rana

The shaking global economy has off late made the BSE Sensex dropping below the 11000 mark. After the SEBI’s decision regarding the tightening up of margins in derivatives the Sensex plunged to its lowest of more than 2 years. The Sensex dropped by 6.98 percent or 754.08 points. Latest measures by RBI of cutting down the Cash Reserve Ratio with a view to infuse liquidity in the market failed to make much impact on the stocks.

Indian stock market regulator SEBI has toughened/tightened the margins with a view to overcome the defaults and limiting up the volatility in the derivative segment. Exposure margin level for gross open positions will now be up by 10 percent or 1.5 times the standard deviation for gross open positions in case of single stock futures and in stock options.
	Reliance dropped to its 52-week low mark by shrinking more than 11 percent. Hindalco Industries and Tata Motors fell more than 10 percent each. The shares of Tata Consultancy Services also tanked more than 11 percent. On the other hand PSU OMCs shares jumped in the range of 1.07 percent to 3.68 percent after the third day consecutive fall in crude oil prices. At 10:21 1ST, the Bombay Stock Exchange 30-share Index was down by 754.08 points or 6.98% at 10055.04 level. The Sensex dropped 781.32 points to 10027.20 in the midday-morning trading, its lowest level since 24 July, 2006.