At lunch, Rajinder was talking about it that today was the black day for Indian share market. Although I dont keep much track of Share market but he is regular player and manages thousands on a good day from shares. He was a bit upset about the position of market today.
It is a news as it is the biggest one-day fall in history of Bombay Stock Exchange. The speed at which it was rising was always under lens of analysts and was being observed very carefully.
Marked dropped by 872 points and closed at 11346 – a total of 7.1% fall. According to analysts, main cause is fall of shares elsewhere in world, particularily Wall Street.
Here I came across this funny Quote by analyst Hemen Kapadia who says that –
Indian markets never correct… they always crash
Here goes Indian Express News –
The Sensex fell nearly 7 per cent on Thursday, posting its biggest single-day points fall, as investors dumped commodities on weak Asian markets and fears of taxes on portfolio investments.
The 30-share BSE index, Sensex ended down 6.76 per cent at 11,391.43 points, after falling 826.38 points. The previous biggest one-day fall was 570.42 points on April 28, 1992.
The 50-issue NSE index provisionally ended down 6.71 per cent at 3,391.05.
“Something had to give … the market had risen very quickly and was already fragile,” said Andrew Holland, vice president of research at DSP Merrill Lynch.