The Hindu : Business : Sensex plunges by 389 points

Online edition of India's National Newspaper
Saturday, Feb 24, 2007
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Business

Business

Sensex plunges by 389 points

MUMBAI: High inflation rate and fear of government action such as ban on export of various products to rein in prices triggered a wave of selling in the stock market on Friday, which plunged by a huge 389 points to end at over a month's low of 13632.53.

The fall, the biggest point-wise so far this year, was also due to investors exercising caution ahead of the Union Budget next week. Despite tight monetary and fiscal measures taken by the government, inflation fell back only marginally at 6.63 per cent for the week ended February 10 from 6.73 per cent the previous week. Investors seemed to have taken a serious view of sky-high prices of essential commodities, which forced Prime Minister Manmohan Singh to set up a special monitoring cell to keep a daily watch on the situation.

After a firm start at 14071.27, the Sensex fell sharply to a low of 13568.08 before ending the day at 13632.53, a net fall of 388.78 points or 2.77 per cent from the previous close of 14021.31. Similarly, the S&P CNX NIfty of the National Stock Exchange tumbled by 101.05 points or 2.5 per cent to end at 3938.95 from Thursday's close of 4,040.00.

The market breadth turned sharply negative as 2,209 stocks recorded losses while only 405 closed with gains.

— PTI

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