The Hindu : Panic grips markets

Online edition of India's National Newspaper
Friday, Jan 23, 2004

Business

Business

Panic grips markets

By Oommen A Ninan

MUMBAI, JAN. 22. Panic gripped the stock markets and heavy selling across the board hit the indices as the benchmark Bombay Stock Exchange 30-share sensitive index (Sensex) tumbled by another 164 points today. The bourses continued to be highly volatile.

It came as no surprise then that the market went through a rollar-coaster ride as without a direction, rumours ruled the roost. There were rumours that huge unwinding on the Futures and Options (F&O) segment by a hedge fund, which led investors to rush for a stop-loss. The ferocious sell-off has been attributed to another rumour that the Government has barred non-resident Indians (NRIs), overseas corporate bodies and hedge funds from investing in Indian equities through participatory notes.

The sensitive index opened at 5793.83 touched a high of 5852.96, declined to a low of 5567.68 and finally closed at 5593.74 losing 164.45 points

SEBI warns participants

The Securities and Exchange Board of India (SEBI) today warned that any persons or entities found to be spreading rumours would be severely dealt with and advised investors not to be misled by such rumours. In a statement, the SEBI said, "during the last few days the stock market has witnessed high volatility. It is gathered that baseless rumours were being floated in the market".

Printer friendly page
Send this article to Friends by E-Mail

Business