ENDTIME CHRONICLES:
COLLAPSING MARKETS
Greece crisis, falling oil prices spook markets
In the stock market early on Monday, the sensex had briefly crossed the 28K mark in intra-day trades, at 28,065 and from that level in just two sessions the index has now lost about 1,000 points.
MUMBAI: Fears about Greece exiting the Eurozone and a global stock market sell off perpetrated by a further slide in oil prices pulled the sensex down by 855 points on Tuesday - its biggest fall in over five years. Falling crude prices —which dipped to below the $50 per barrel mark for the first time since 2009 — also unnerved FIIs that aggravated the fall further, brokers and analysts said. The sensex closed at 26,987 and the session left investors poorer by Rs 2.76 lakhcrore (about $43.5 billion) with BSE's market capitalization now at Rs 96.6 lakhcrore.
The day's trading started with the sensex opening about 150 points down, mainly because of Monday's sell-off in the US markets on the back of dipping crude oil price, and soon the index was down over 600 points. After the news about Greece — that a party that has a higher chance of coming to power intends to take the country out of the Eurozone — hit the market, the sensex fell as much as 900 points and recovered just a tad to close 855 points (3.1%) lower. Market players said that if Greece exits the Euro it would be first such case and hence the global market will enter an unknown territory and hence the nervousness among investors around the world.
Compared to the stock market, in the bullion market gold prices inched up to Rs 27,320 per 10 grams, up by Rs 250 because of the yellow metal's safe haven character among asset classes. Rupee on the other had closed flat at 63.39 to a dollar. The benchmark yield on 10-year gilts too closed nearly unchanged at 7.90% level.
The day's trading started with the sensex opening about 150 points down, mainly because of Monday's sell-off in the US markets on the back of dipping crude oil price, and soon the index was down over 600 points. After the news about Greece — that a party that has a higher chance of coming to power intends to take the country out of the Eurozone — hit the market, the sensex fell as much as 900 points and recovered just a tad to close 855 points (3.1%) lower. Market players said that if Greece exits the Euro it would be first such case and hence the global market will enter an unknown territory and hence the nervousness among investors around the world.
Compared to the stock market, in the bullion market gold prices inched up to Rs 27,320 per 10 grams, up by Rs 250 because of the yellow metal's safe haven character among asset classes. Rupee on the other had closed flat at 63.39 to a dollar. The benchmark yield on 10-year gilts too closed nearly unchanged at 7.90% level.
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