The Hindu : Business : Sensex crashes by 506 points

Online edition of India's National Newspaper
Tuesday, Jun 10, 2008
ePaper | Mobile/PDA Version

Business

Business

Sensex crashes by 506 points

Special Correspondent

High oil prices, inflationary pressures impact

Realty, IT and bank stocks are the major losers
U.S. unemployment rate dampens sentiment

— PHOTO: PAUL NORONHA

MARKETS COLLAPSE: An investor looks at the display screen outside the Bombay Stock Exchange in Mumbai as the markets tumbled on Monday. The benchmark Sensex ended the day lower at 15,066.10 by over 500 points after collapsing to below 15,000 in early trade on concerns over surging crude prices. The S&P CNX Nifty of the National Stock Exchange plunged by 126.85 points to close at 4,500.95.

MUMBAI: The rising concern over oil prices and inflationary pressures hit the stock markets again and the benchmark Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) lost 506.08 points or 3.25 per cent at 15066.10. Realty stocks are the major losers with 7.38 per cent drop followed by IT (4.21 per cent), oil and gas (3.29 per cent) and bank (3.21 per cent).

On the National Stock Exchange, the broader 50-share Nifty lost 126.85 points to close at 4500.95 against the previous close of 4624.80.

Rising crude oil prices is a major concern for the stock markets and the price of oil ruled high on Monday too at $137.7 a barrel. It surged to an all time high of $139.12 last Friday. Further, an increase in U.S. unemployment rate dampened sentiment on the bourses in the U.S. and other parts of the world. The U.S. markets are deeply affected by fears of a recession amid investor worry over further credit tightening while home values deteriorate.

The credit crisis is still not yet over as Lehman Brothers Holdings on Monday announced a forecast of a quarterly loss of $2.8 billion and plans to raise $6 billion in new capital. Its (Lehman Brothers) shares fell by about 10 per cent before the bell in the U.S. markets on Monday.

While most of the European markets ended in the negative territory, in Asian markets, Japan’s Nikkei lost 308.06 points at 14181.88 while Hong Kong’s Hang Seng gained 146.89 points at 24402.18.

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

Business

News Update

Stories in this Section