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<span style='font-size:12pt;line-height:100%'>Sensex crashes 800 pts; trading halted</span>
The Sensex crashed to 4283 points on disinvestment fears early on Monday. Trading has been halted for another two hours.
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Now Cong have issued this statement --Congress says Govt will be investment friendly
ya with leftist they will be
<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>
Probably a record of some sorts, among the looosers category.........a Nation on the march, till a week ago, all of a sudden loosing this amount of money, in a couple of hours??
No one person can fluctutae the market this big, in such a short span of time. Remember the Harshad Mehta days?? even then he did it in a systematic, long-term-frame procedure.
Loosing 2 trillion rupees, that's about $40 bilion, in such a short span of time is no one man's job.
<!--QuoteBegin-Mudy+May 17 2004, 01:25 AM-->QUOTE(Mudy @ May 17 2004, 01:25 AM)<!--QuoteEBegin--> Do you think they can survive now? <!--QuoteEnd--><!--QuoteEEnd-->
Unless Pres. Kalam stands up for his Vision 2020 and do something 'severe' there's no stopping to this madness, at least markert wise.
Right now even if Congress says OK lefties are out, and they ain't calling no shots........do you think market would believe that?
I'm a simple, non-business type person.......n' even I won't believe it!
No one person can fluctutae the market this big, in such a short span of time. Remember the Harshad Mehta days?? even then he did it in a systematic, long-term-frame procedure.
Loosing 2 trillion rupees, that's about $40 bilion, in such a short span of time is no one man's job. <!--QuoteEnd--><!--QuoteEEnd-->
Mudy,
On second thoughts.......I take it back. It can be done with enough $$$s. N' if you add 2 + 2 ............I think it's certainly possible............
Krishna,
Just had a word with someone in India. Foreign fund managers are pulling out of market. It is very much external influence. Good way to get rid of leftist.
Have you noticed within last few days world is moving towards Left based government? (Spain and India)
It is good, left supported government should not stay PERIOD. In long run left will hurt more.
Altho the trouble is that even if these stupid utterings by leftists are reversed we loose face - the impression that the govt is weak gets created. Hope MMS has some good things to say.
At this time I hope (against hope) that BJP extends support to congress and keep the lefties out. Only on one condition tho - Sonia should not become the PM and lefties are to be kept OUT !!
<b>The Left parties termed today's (Monday) crash of the stock market as not having any link with the economic fundamentals but the result of the "influence" the foreign institutional investors have on the trading system.</b>
"The loss (over stock market crash) is notional and adjustments keep taking place. There is no direct link of the fall (in Sensex) with the fundamental economic structure of the country," CPI(M) leader Nilotpal Basu said in New Delhi.
Reacting to the Sensex crash by over 800 points in the morning, he said there was an urgent need for capital market reforms to facilitate large-scale entry of small investors in stocks' trading.
Gone with the wind ( *ing Mega Stars Atalji Lkg etc)
The stock market lost 11% in one day with automatic interrupts striking twice to control the downfall.
Mera Bharat Mahan.
(If only our BJP stalwarts were to tour each hamlet and explain whats going on in the country to the vasis and adivasis of the "Mera gaon Mera desh" things would have been different. well its crying over the spilt milk now)
<!--QuoteBegin-Krishna+May 17 2004, 03:01 AM-->QUOTE(Krishna @ May 17 2004, 03:01 AM)<!--QuoteEBegin--> <b>The Left parties termed today's (Monday) crash of the stock market as not having any link with the economic fundamentals but the result of the "influence" the foreign institutional investors have on the trading system.</b>
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The Left have been openly supported the idea of rolling back the country to the cold war era. If they were to ever stick their head out of their behinds they'll and read their own Das Kapital they'll see why the business community is jitery. When even the biggest communist nation on earth like China has adopted capitalism in practice, our home grown ones are still time wrapped in october revolution <!--emo&:thumbdown--><img src='style_emoticons/<#EMO_DIR#>/thumbsdownsmileyanim.gif' border='0' style='vertical-align:middle' alt='thumbsdownsmileyanim.gif' /><!--endemo-->
There were minor skirmishes between brokers and television crew at the Bombay Stock Exchange on Monday, with the former blaming the media for "irresponsible" reporting, which they claim was one of the reasons for the bloodbath on the bourses.
Apart from a verbal duel, brokers apparently jostled with the TV crew, who had rushed to BSE after the market went into a tailspin, losing 786 points during intra-day trading.
<b>The brokers alleged that the media was doing 'wrong' reporting and had given a 'wrong' picture during elections as well as exit polls.</b>
The agitated brokers also questioned the role of SEBI, with one asking: "what is it doing, has it stopped functioning?"
<b>Another broker suggested that SEBI should be asked to control the so-called "leaders, who make irresponsible comments, which had resulted in havoc at the bourses."</b>
<b>Dilip Mehta, an investor, said: "I have never seen such a bloodbath in my 24 years of trading".</b>
Finance Minister Jaswant Singh on Monday swung into action asking the Reserve Bank of India and market regulator SEBI to take necessary action to improve the health of the bourses following the unprecedented crash that wiped out huge sums of market capitalisation.
"I have discussed it with SEBI and RBI. Although I do not have any authority, my advice is to be cautious," he told reporters after the meeting of top BJP leaders at the PM's residence.
Attributing the stock market crash to spread of uncertainty in the market and lack of confidence, Singh said: "If a responsible leader who aspires to join the Government makes a statement, it will have an effect on the market sentiments."
On whether FIIs deliberately manipulated the market, Singh said: "I would be extremely cautious in comment on this issue. We have a healthy market and our economic fundamentals continue to remain strong."
<b>Selling in India follows stocks to U.S</b>.
By Michael Baron, CBS.MarketWatch.com
Last Update: 11:59 AM ET May 17, 2004
NEW YORK (CBS.MW) - U.S. listed shares of India-based companies fell Monday, reflecting the plunge in the markets in Bombay because of apprehension about the potential policies of a new government in the country.
Fears that the Congress Party, which was victorious in parliamentary elections last week, will slow down the pace of privatization fed the sell-off, forcing regulators to halt trading at various points during the session, according to FT.com.
<b>HDFC Bank Ltd. (HDB: news, chart, profile) was the biggest percentage decliner on the New York Stock Exchange, falling more than 20 percent to $20.75. Fellow banking firm Icici Bank Ltd. (IBN: news, chart, profile) followed suit, losing more than 10 percent to $11.37. </b>
<b>Other notable losers included Rediff.com (REDF: news, chart, profile), off more than 5 percent to $6.80 <!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo--> ; Satyam Computer Services Ltd. (SAY: news, chart, profile), tumbling almost 8 percent to $16.92, Infosys (INFY: news, chart, profile), falling more than 4 percent to $71.57 <!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo--> , and Wipro Ltd. (WIT: news, chart, profile), down about 6 percent to $36.30.</b>
Michael Baron is a reporter for CBS.MarketWatch.com based in New York
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