Black Monday: Markets witness biggest ever fall

BEAR HUG: Heavy selling was seen across the sectors, pushing all heavy-weights to their recent lows.

    

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Mumbai: It was a highly dramatic and scary day for markets as markets saw their biggest ever fall. It was the worst day of trading in our trading history as the pace of the fall was unnerving.

The markets started weak and with heavy bouts of selling was seen during the day with Sensex and Nifty down almost 12% at one point of time. The Sensex went below 17,000 mark during the course of the day and Nifty sub 5000 mark.

BSE was shut for a brief period of time however it resumed trading immediately. Later it recovered Sensex recovered 700 points from the day's low and finally Nifty closed down 8.5 per cent and Sensex was down 7 per cent.

Before this the markets saw the second highest point fall on May 18, 2006; Sensex was down 826 pts (6.76 per cent) on account of Government circular on taxing investment gains; heavy selling by FIIs, retail investors and a weakness in global markets.

On April 28, 1992; Sensex was down 570 pts (12.77 per cent) on account of Harshad Mehta securities scam. On May 17, 2004; Black Monday. Sensex was down by 565 points on concerns over NDA losing election to loses BJP.

It has not only been the pressure from global peers but on the domestic front also with increased unwinding pressure the fall has been accentuated.

Even experts were a bit shaken and shocked with the nasty fall. According to Raamdeo Agarwal with global news not favourable there might be a further fall in the markets. He feels that Indian markets can't remain isolated when selling is seen in markets across globe including Asia.

Markets broke all the important technical and psychological levels. According to analyst the scenario was similar to the May 2006 fall. There is pressure due to triggering of margin call. Nifty Futures is trading at 100 points discount.

India was the worst performing market today in Asia; US recession fears have aggravated which led to Japan's Nikkei declining 3.865 per cent or 535.35 points, Hong Kong's Hang Seng tumbled 4.425 per cent or 1115.12 points Singapore's Straits Times slipped 3.23 and South Korea's Seoul Composite fell 2.95 per cent.

Europe is trading extremely weak with DAX down over 3% followed by CAC and FTSE.

After seeing a sharp fall of over 15%, the BSE midcap and smallcap index closed down 10%.

Realty, metal, midcap index have collapsed, however all the BSE indices were trading with huge cuts. BSE realty and metal index were down over 13%, followed by power and oil & gas index was down over 10%. Pharma and auto were down over 7%.

Among the biggest midcap losers Nagarjuna Fert, WWIL, Oswal Chem down 33%, Essar Oil down 30% Ispat Ind was down 30%, Bajaj Hind down 28% and Chambal & Arvind down 26%.

Among the top Nifty losers RPL, REL, Bajaj Auto were down 19%, Tata Power down 16%.