03-14-2008, 05:27 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India growth story flounders </b>
Pioneer.com
Vivek Sethi | New Delhi
<b>In the history of the Sensex, maximum pain has been inflicted in this last quarter of financial year 07-08 on investors sentiments. Investors have been bottomed out and started doubting the economic fundamentals. As, the benchmark index has already witnessed six out of the ten largest falls in its history in this last quarter</b>.Â
Moreover, the Government is caught between the proverbial "devil and the deep sea". As the mounting inflationary pressure is likely to tie down the RBI from loosening monetary policy, even though the slump in industrial growth would force the Reserve Bank of India (RBI) to cut interest rates during 2008-09, to be unveiled in April. And, the pace of economic growth would have taken a severe beating by the time the fiscal stimulus announced in by P Chidambaram in the Union Budget for 2008-2009 would have the desired impact of reviving consumer growth in the domestic market, if at all it does.
Although the global markets witnessed some marginal losses, the Indian markets ended up nursing the deepest cut.
Sensex on the Bombay Stock Exchange tanked over 770 points to close at 15,357.35 points. Marketmen said an onslaught of selling by funds gripped the markets, wherein the FIIs accounted for a net sale of Rs 108.50 crore, aggravated with the fears of recession in the US. The dismal IIP index and the dollar dipping below record low level against the yen since 1995 -- further dampened the market sentiments.
The 30-share Sensex, which commenced the day on a weak note, tumbled by 770.63 points to 15,357.35. The lowest closing recorded since August 31 at 15,318.60 points. The BSE barometer touched the day's low of 15,228.99 and a high of 15,873.28 points.
The wide-based National Stock Exchange index Nifty also dropped by 258.40 points to 4,623.60 as most of the heavyweight stocks led by banking sector yielded significant ground.
Over half a trillion dollars have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence today sent the market to its lowest level in about six-and-a-half months.
The Sensex had risen 6,500 points in 2007 to end at 20,286.99 points. In terms of the market capitalisation also, the loss incurred since the beginning of 2008 accounts for about 60 per cent of the total gain in 2007. The market capitalisation of all the listed companies had increased by Rs 35,45,626 crore in 2007 to end the year at Rs 71,69,985 crore.
Following are the 10 biggest fall witnessed by the benchmark index Sensex in its life-time:
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Pioneer.com
Vivek Sethi | New Delhi
<b>In the history of the Sensex, maximum pain has been inflicted in this last quarter of financial year 07-08 on investors sentiments. Investors have been bottomed out and started doubting the economic fundamentals. As, the benchmark index has already witnessed six out of the ten largest falls in its history in this last quarter</b>.Â
Moreover, the Government is caught between the proverbial "devil and the deep sea". As the mounting inflationary pressure is likely to tie down the RBI from loosening monetary policy, even though the slump in industrial growth would force the Reserve Bank of India (RBI) to cut interest rates during 2008-09, to be unveiled in April. And, the pace of economic growth would have taken a severe beating by the time the fiscal stimulus announced in by P Chidambaram in the Union Budget for 2008-2009 would have the desired impact of reviving consumer growth in the domestic market, if at all it does.
Although the global markets witnessed some marginal losses, the Indian markets ended up nursing the deepest cut.
Sensex on the Bombay Stock Exchange tanked over 770 points to close at 15,357.35 points. Marketmen said an onslaught of selling by funds gripped the markets, wherein the FIIs accounted for a net sale of Rs 108.50 crore, aggravated with the fears of recession in the US. The dismal IIP index and the dollar dipping below record low level against the yen since 1995 -- further dampened the market sentiments.
The 30-share Sensex, which commenced the day on a weak note, tumbled by 770.63 points to 15,357.35. The lowest closing recorded since August 31 at 15,318.60 points. The BSE barometer touched the day's low of 15,228.99 and a high of 15,873.28 points.
The wide-based National Stock Exchange index Nifty also dropped by 258.40 points to 4,623.60 as most of the heavyweight stocks led by banking sector yielded significant ground.
Over half a trillion dollars have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence today sent the market to its lowest level in about six-and-a-half months.
The Sensex had risen 6,500 points in 2007 to end at 20,286.99 points. In terms of the market capitalisation also, the loss incurred since the beginning of 2008 accounts for about 60 per cent of the total gain in 2007. The market capitalisation of all the listed companies had increased by Rs 35,45,626 crore in 2007 to end the year at Rs 71,69,985 crore.
Following are the 10 biggest fall witnessed by the benchmark index Sensex in its life-time:
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