Sensex Dives Below 10,000 Mark

Author: Anurag Bhullar

The ongoing recession in world economy is clearly clutching hard on Indian markets; Sensex has faced its worst ever slump in past 10 years. The tough times of the financial market got worse in the second session on Friday when the BSE Sensex dropped below 10,000 points on the negative cues coming from the world markets. Experts feel that this was a result of the speculation that the Dow would fall around 200 points at the start of the trading session.

It was the first time when the Sensex plunged below the 10,000 level since July, 2006. On Friday trading the Sensex reached the intraday low of 9,911.32 points that is an over 53 percent decline from the historic mark of 21,000 points touched by it this year. The Sensex ended the day with 9,975.35 points, a drop of 5.73 percent or 606.14 points from the previous day’s close.

The BSE’s reality index shredded nearly 9 percent whereas the metal index of the BSE dropped over 5 percent. The major stocks that took a beating on Friday include Reliance Industries, Reliance Communication, Reliance Infrastructure, BHEL, NTPC, Infosys, SBI, HDFC Bank, ICICI Bank, Bharti Airtel and TCS. Reliance Infrastructure dropped over 11 percent; NTPC, JP Associates and Reliance Communication were down 9 percent each.

The Nifty also dropped below the 3,050 mark and touched an intraday low of 3,046.60 points. It settled the day with 3074.35 points by dropping 5.96 percent below from its previous close.