Sensex falls on rumours of payment crisis

MUMBAI, DEC. 22. Wary operators pressed the panic button on rumours of possibility of payment crisis that landed at midsession on the Bombay Stock Exchange today sending market indices into a tailspin. At the final point, the bellwether Sensex concluded at 3905.90 against yesterday's close of 4034.23, a hefty loss of 128.33 points or 3.18 per cent. The index lost over 263 points in last straight four trading sessions.

Looking at the current market behaviour, dealers said sustained rise in net outstanding positions, particularly in top ten traded new-economy stocks which represent more than 40 per cent of total outstandings up to Wednesday, was the main cause of concern that forced speculators to offload their holdings even at lower price leading to steep erosion in share values.

Bear operators also took full advantage of the prevailing market situation by selling heavily, particularly in technology, media and telecom (TMT) sectors, and made a successful attempt to tighten their vice-grip. The BSE-30 share sensitive index, however, opened firm at 4057.72 and immediately touched a high of 4080.30. Later large scale offloading pulled down the Sensex below the 3900-mark at the day's low of 3895.37. - PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : SEBI sets new IPO norms
Next     : MRF pays 90 p.c. final