The Hindu : Business : Sensex dips 385 points

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Tuesday, Nov 06, 2007
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Sensex dips 385 points

MUMBAI: The benchmark Sensex on Monday fell by 385 points due to selling in banking stocks triggered by renewed fears of credit crisis fallout.

Banking shares were hit hard on selling after the news spread that Citigroup’s CEO Charles Prince resigned following major write-offs by the world’s biggest bank caused by the subprime mortgage crisis.

Front-line counters met with heavy sell offs but mid-cap and small-cap shares attracted good buying interest throughout as investors shifted their focus to these segments. Reflecting the slide, the Bombay Stock Exchange 30-share barometer opened higher at 20009.35 but later moved downward to end the day at 19590.78, a net loss of 385.45 points from Friday’s close of 19976.23.

The broader S&P CNX Nifty of the National Stock Exchange also fell sharply by 85.10 points to close at 5847.30 against the previous close of 5932.40. Asian and European markets traded sharply lower.

Rupee steady

The rupee on Monday ended steady at 39.31/32 against the U.S. currency amid continued weakness in Asian equity markets.

Soaring global crude prices and fresh worries over the financial sector’s exposure to credit crisis notwithstanding, the rupee sentiment remained buoyant following weak dollar overseas and the recent high in the cash reserve ratio (CRR).

In active trade at the interbank foreign exchange market, the rupee moved in a range of 39.25 and 39.39 during the day after resuming weak at 39.37/39 against Friday’s close of 39.31/32 a dollar. — PTI

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