MP Rana, Saturday 20th August 2011 
The Indian stock markets saw a sharp plunge this week by recording over four percent fall due to the heavy pull out of money from equities on the persisting mayhem generated by a fall in credit rating of the biggest economy of the world i.e. US, by S&P.
Nifty saw a low of 4796 points during the week and ended at 4845 points, a point last seen in May, 2010; whereas Sensex slipped to 15,988 points for a brief period on Friday but recovered a bit from day’s low to end at 16,142 points on Friday\'s closing.
According to the analysts at BNP Paribas, Nifty may dive down to 4,700 points before the maturity of futures and options in the upcoming week, and this will be followed by a jump in the index after that, probably by end of month.
The BSE Bankex index also fell by 7.5% to a point of 10,763 amidst the fears about rise in bad loans due to a recent rate hike by RBI. Similarly, Realty index also fell by 7.3% due to the recent tussles of biggest realtor DLF.
Some of the other large cap securities that saw a fall were Wipro, SBI, Maruti Suzuki, HDFC and Larsen & Toubro. According to the analysts, there is a panic among the institutional investors due to lack of clarity with respect to Eurozone crises and current setback to US economy. This has led to a sharp disinvestment by FIIs to the tune of Rs. 7000 crore in the month of August as per the data of SEBI.
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