Mumbai: In a day marked with high volatility, the Bombay Stock Exchange benchmark Sensex on Tuesday shed another 106 points as funds continued their selling-spree amid the melting in global stock markets.
Taking positive cues from Reserve Bank’s cutting CRR rate by 50 basis points on Monday, the BSE barometer commenced the day higher by a handsome over 379 points and had regained the 12,000 level, which it lost on Monday on massive selling for the first time in two years.
However funds continued their selling, pulling down the key index to 11,695.24, a loss of 106.46 points. With selling continuing unabated, the Sensex even dipped to the low of 11,501.85 points during the day.
As the market experienced choppy trade throughout the day, the wide-based National Stock Exchange index Nifty moved between 3,732.65 and 3,537.00 points before ending at 3,606.60, a marginal gain of 4.25 points.
Trading activity was mixed as initial gains were on the back of the RBI cutting cash Reserve ratio, which would infuse Rs20,000 crore into the liquidity. But reports of melting global stock markets quickly reversed the trend.
Stocks in Europe and Asia declined on concerns that financial firms may need more capital than $USD 700 billion, announced in the bailout package by the US. The downtrend overshadowed the speculation that central banks around the world may reduce interest rates.
The MSCI Asia Pacific Index fell 1%, while the MSCI Emerging Markets Index lost 0.5 %. Futures on the Standard & Poor’s 500 Index retreated less than 0.1%.