05-17-2004, 06:06 AM
<b>The stock market crashed by a whopping over 550 points within minutes of its opening on Monday, making it the worst-ever fall wiping out about Rs 1,35,000 crore (Rs 1,350 billion) wealth.</b>
<i>** that's $27 billion (approx.)</i>
Trading was suspended within minutes after the Sensex dipped by 10 per cent on the Bombay Stock Exchange.
The BSE Benchmark 30-share Index crumbled by 553 points to 4516.58 at 10.17 am after opening at 5020.89 as against last Friday's close of 5069.87.
Brokers said the trading was suspended for one hour as the Sensex reached 10 per cent circuit following all-round selling pressure from investors.
"The BSE has suspended the trading for an hour to deal with sudden volatility and we will review the situation around 11 am again," a BSE official said.
"The market fell by about 550 points on opening and when there is a change of more than 10 per cent, we suspend the trading to deal with volatility," he added.
The carnage was triggered on Friday when the market crashed by 330 points following the anti-divestment statements by the Left parties and Monday's crash was being attributed to the uncertainty on economic policies of the new government.
<b>A market analyst Apoorva Shah of Prabhu Das Leela Dhar Securities estimated the loss in market capitalisation at over Rs 100,000 crore.</b>
<i>That's $20 billion (approx.)</i>
<i>** that's $27 billion (approx.)</i>
Trading was suspended within minutes after the Sensex dipped by 10 per cent on the Bombay Stock Exchange.
The BSE Benchmark 30-share Index crumbled by 553 points to 4516.58 at 10.17 am after opening at 5020.89 as against last Friday's close of 5069.87.
Brokers said the trading was suspended for one hour as the Sensex reached 10 per cent circuit following all-round selling pressure from investors.
"The BSE has suspended the trading for an hour to deal with sudden volatility and we will review the situation around 11 am again," a BSE official said.
"The market fell by about 550 points on opening and when there is a change of more than 10 per cent, we suspend the trading to deal with volatility," he added.
The carnage was triggered on Friday when the market crashed by 330 points following the anti-divestment statements by the Left parties and Monday's crash was being attributed to the uncertainty on economic policies of the new government.
<b>A market analyst Apoorva Shah of Prabhu Das Leela Dhar Securities estimated the loss in market capitalisation at over Rs 100,000 crore.</b>
<i>That's $20 billion (approx.)</i>