Recovery after panic on Dalal Street
On a fate-changing day for Wall Street, the Indian stock market saw panic selling on Monday morning in the wake of news that Lehman Brothers, the fourth largest US investment bank, had succumbed to the bad mortgage finance and that Bank of America would buy the trouble-torn Merrill Lynch for $50 billion.
In the drastic early sell-off Sensex plunged 850 points. However, the market recovered in the latter half on short covering and bottom fishing. The index ended the day with a less severe loss of 469.54 points. What triggered the short covering was a decline in crude oil prices by more than $4 while the Indian market traded. “I don’t believe in the decoupling theory.Whatever happens in the US will have repercussions around the world, be it Brazil, Europe, China or India,” said Leslie Menkes, Morgan Stanley head of onshore private wealth management for Asia. “We don’t see markets breaking away from the trend.”
With Monday’s decline, Sensex lost 1,413.7 points, or nearly 10 per cent, in a week’s time — equivalent to a loss of Rs 4,39,535.2 crore in investor wealth in six trading sessions. The NSE’s S&P CNX Nifty index fell 3.68 per cent, or 155.55 points, to close at 4,072.90.
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In the drastic early sell-off Sensex plunged 850 points. However, the market recovered in the latter half on short covering and bottom fishing. The index ended the day with a less severe loss of 469.54 points. What triggered the short covering was a decline in crude oil prices by more than $4 while the Indian market traded. “I don’t believe in the decoupling theory.Whatever happens in the US will have repercussions around the world, be it Brazil, Europe, China or India,” said Leslie Menkes, Morgan Stanley head of onshore private wealth management for Asia. “We don’t see markets breaking away from the trend.”
With Monday’s decline, Sensex lost 1,413.7 points, or nearly 10 per cent, in a week’s time — equivalent to a loss of Rs 4,39,535.2 crore in investor wealth in six trading sessions. The NSE’s S&P CNX Nifty index fell 3.68 per cent, or 155.55 points, to close at 4,072.90.
To read the full article, click here..
To read the ePaper, visit: http://e.mydigitalfc.com
Labels: bank of America, BSE, crude oil prices, Dalal Street, Indian Stock Market, Lehman Brothers, Merrill Lynch, Nifty index, NSE, panic, recovery, sensex, trading, US Investment bank, Wall Street
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12:58 PM
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