There was a virtual bloodbath on the stock markets on Tuesday with both the benchmark Sensex as well as Nifty sinking by another 3 per cent, reviving chilling memories of the May stocks carnage.
UPDATED AT 4: 45 PM
MUMBAI: There was a virtual bloodbath on the stock markets on Tuesday with both the benchmark Sensex as well as Nifty sinking by another 3 per cent, reviving chilling memories of the May stocks carnage.
Reeling under sustained hammerings by bears, which took the opportunity to tighten their grip on markets, the Sensex spiralled down below the 13K mark, sounding an alarm to investors.
The Sensex later made a remarkable recovery of 193 points from the day's low of 12,801.65 and closed at more than a month's low of 12,995.02, representing a big fall of 404.41 points or 3.02 per cent from Monday's close of 13,399.43.
The Bombay Stock Exchange (BSE) barometer has fallen by 977.01 points or 6.99 per cent in the three-day slide.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) recorded a fresh steep fall of 132.60 points or 3.44 per cent to end the day at 3,716.90 from last close of 3,849.50.
Attributing across-the-board selling to likely problems of margin calls, brokers said operators and retail investors faced similar situation in mid-May, when indices witnessed a fall of over 10 per cent in a week.
Derivatives segment witnessed intensified selling spree as operators and Foreign Institutional Investors spared no time to dispose their long holdings in a bid to escape margin calls, they added.
Margin calls are normally triggered when markets show hyper volatility or witness abnormal slides. According to analysts, the major factor to trigger a cascading effect on sinking market is fears of margin calls from market intermediates.
UPDATED AT 2: 45 PM
MUMBAI: The benchmark Sensex on Tuesday plunged by over 502 points to go below the crucial 13,000 level in pre-close trading on the Bombay Stock Exchange, as foreign investors off-loaded part of their holdings.
The Sensex, which melted by over 400 points on Monday, plunged further by 502.21 points at 12,897.22 at 1430 hrs while the National Stock Exchange index Nifty lost 157.80 points at 3691.70.
MUMBAI: Continuing with its downslide, the benchmark Sensex fell by more than 163 points in early trading on the Bombay Stock Exchange on Tuesday on sustained selling by funds and retail investors.
The 30 share key index, Sensex, which had lost nearly 575 points in the last two trading sessions, was down by another 163.48 points at 13,235.95 in the first five minutes of trade.
Similarly, the wide-based National Stock Exchange's Nifty was down by 64.25 points at 3,785.15.
The major losers, which dragged down the Sensex were BHEL, Bajaj Auto, Hero Honda, Grasim, HDFC Ltd, State Bank of India, ONGC, TCS, Satyam Computers and ACC.
However, Reliance Industries and Larsen Toubro were up on selective buying.
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