The BSE bellwether Sensex crashed by 400.06 points on all-round selling triggered by the RBI decision to hike Cash Reserve Ratio of banks by half a percentage point.
UPDATED AT 4: 58 PM
MUMBAI: The Bombay Stock Exchange bellwether Sensex on Monday crashed by 400.06 points on all-round selling triggered by Reserve Bank's decision to hike Cash Reserve Ratio of banks by half a percentage point.
The 30-share Sensitive Index had tumbled by 537.76 points, the biggest intra-day fall since September 11, but gained partially toward the end but closed 2.9 per cent lower at 13,399.43.
Finance Minister P Chidambaram allayed fears about the plunge, saying banking shares that led the fall would re-adjust on higher profitability.
Similarly, the National Stock Exchange index Nifty plunged by 1,112.50 points, or 2.84 per cent at 3,849.50 after dipping below 3,800 points to touch 3,798.30 points mid-way.
Stock brokers said RBI's decision to hike CRR of banks by 50 basis points to tighten liquidity and contain inflation, triggered the fresh round of selling, particularly in banking sector stocks by foreign funds and retail investors.
MUMBAI: The bourses crashed at mid-session on Monday with the benchmark Sensex losing more than 500 points on Bombay Stock Exchange as foreign funds offloaded part of their holdings in blue chip stocks.
The Sensex, which lost more than 172 points on Friday, tumbled by 537.76 points to 13,261.73 at 1:00 pm as almost all the index-related stocks, particularly banking shares, moved in negative zone.
A similar meltdown was recorded in the wide-based National Stock Exchange index Nifty, which lost 163.70 points at 3,798.30.
Stock brokers said RBI's decision to hike CRR of banks by 50 basis points to tighten liquidity and contain inflation, triggered the fresh round of selling, particularly in banking sector stocks by foreign funds and retail investors.
Tata Steel stocks, a heavy-weight on the sensex, faced increased selling pressure and dropped by Rs 29 at Rs 453.50 after the company raised its bid for the acquisition of Anglo-Dutch steel giant Corus.
MUMBAI: Investors offloaded banking stocks as also that of Tata Steel, leading to a slide of 155 points on the Bombay Stock Exchange benchmark index Sensex in early trade on Monday.
The 30-share Sensex, which lost more than 172 points on Friday, slid another 155.86 points to 13,643.63 in the first ten minutes of trade.
Similarly, the National Stock Exchange index Nifty fell by 46.70 points at 3,915.30.
Stock brokers said the hike in CRR of banks by 50 basis points to tighten liquidity and contain inflation, triggered fresh round of selling, particularly in banking sector stocks by foreign funds and retail investors.
The major losers, which dragged the Sensex down were State Bank of India, ICICI Bank, HDFC Bank, Infosys Technologies, Bajaj Auto, Maruti Udyog, Tata Motors, Dr Reddy's Lab, ACC and
Grasim Industries.
Tata Steel stocks faced increased selling pressure and lost Rs 14 at Rs 467.90 after company raised its bid to USD 9.2 billion dollars for acquisition of Anglo-Dutch steel giant Corus from the earlier value of USD 8.1 billion.
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