Mumbai, August 06: The stock market today plunged over 700 points as the BSE Sensex fell below the 17K-mark on across the board selling by investors amid fears of recession in the US and debt crisis in some euro-zone nations. Recovering partially, the Bombay Stock Exchange 30-share barometer, which fell for the fourth straight day to touch 14-month low, closed at 17,305.87 – down 387.31 points or 2.19 per cent – eroding investor wealth by Rs 1.33 lakh crore.
All the 13 sectoral indices recorded major losses with stocks of IT, metals, realty, financials, oil and gas and capital goods leading the fall. Sensex blue chips RIL, Infosys, ICICI Bank, ITC and Sterlite lost 3-7 per cent. Finance Minister Pranab Mukherjee sought to calm market nerves saying,
“This is nothing domestic. It is substantially due to external factors. Stock markets fell due to global factors like weak recovery in US and spread of debt burden in Eurozone. Current volatility is temporary.” Market regulator Sebi said it was watching the situation closely. “… And our belief is that everything is perfect and right in our market.
There is nothing for the people to worry,” said Sebi Chairman U K Sinha. “Our risk management system is working perfectly. All the settlements are taking place,” he added. The Reserve Bank said, however, that India will have to learn to live with volatility in the global economy. MORE PTI VMP RSU SBP BJ SA SKB NS
–Agencies