MUMBAI: The Sensex opened with a huge negative gap of 237 points at 9,535 on weak global cues. With Reserve Bank leaving all rates and reserve ratios unchanged in the monetary policy review, the market just caved in... the Sensex plunged to a low of 8,567 - a fall of 1,205 points from the previous close of 9,772. The Sensex finally closed with a huge loss of 1,071 points (10.96%) at 8,701.
All the sectoral indices closed with steep losses. The BSE Realty index plunged over 24%. The BSE Oil & Gas index dropped 15%. The BSE Bankex and Metal indices slipped over 12%. Market breadth was extremely bearish - out of over 2,625 scrips traded, over 2,320 declined.
DLF plunged nearly 24% to 204. Ranbaxy and Hindalco dropped over 17% each to Rs 189 and Rs 43, respectively.
Reliance plunged to a low of Rs 991 - the first time since 2006 - and closed with a huge loss of 16% (Rs 200) at Rs 1,015. ICICI Bank dropped 15% to Rs 310. SBI, HDFC, Tata Motors, M&M and RCom also closed with steep losses.
Total market turnover (BSE+NSE) was Rs 67,895 crore. Reliance was the most active counter on the BSE with a turnover of Rs 380 crore followed by Reliance Capital (Rs 241 crore) and SBI (Rs 235 crore).
Markets Turnover (in Rs cr):
BSE CASH 4,270.71
NSE CASH 11,148.12
NSE F&O 52,476.62
TOTAL 67,895.00
BIGGEST SENSEX WEEKLY FALLS
12/23/1990 -16.73%
10/12/2008 -15.95%
05/03/1992 -12.97%
10/24/2008 -12.77%
05/14/2000 -12.50%
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Index-based marketwide circuit breaker
The system is applicable at three stages of the index movement either way at 10%, 15% and 20%. This circuit breaker brings about a coordinated trading halt in all equity and equity derivative markets nationwide.
The market wide circuit breakers would be triggered by movement of either Sensex or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1300 hrs. In case the movement takes place at or after 1300 hrs. but before 1430 hrs there will be a trading halt for half an hour. In case the movement takes place at or after 1430 hrs. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1300 hrs. If the 15% trigger is reached on or after 1300 hrs. but before 1400 hrs, there will be a 1 hour halt. If the 15% trigger is reached on or after 1400 hrs. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of Sensex). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.
On September 30, 2008, the last trading day of the quarter, Sensex closed at 12860.43 points. The absolute points of Sensex variation (over the previous days closing Sensex) which would trigger market wide circuit breaker for any day in the quarter between October 1, 2008 and December 31, 2008 would be as under:
Percentage (+/-) Equivalent Points (+/-)
10% 1,275
15% 1,925
20% 2,575 |
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