Investors lose Rs 6 trillion in stocks

Written by Agencies | Mumbai, January 26: | Updated: Jan 26 2008, 21:59pm hrs
Investors wealth to the tune of about Rs 6 lakh crore was wiped out during the week as the stock market witnessed a record single-day loss as well as gain on global developments.

The Bombay Stock Exchange barometer plunged by a record 1,408 points on Monday and 875 points (second biggest fall) on Tuesday after a credit crisis in the US and fears of imminent US recession created panic across the world markets.

Bourses at home were hit hard due to margin calls earlier in the week coupled with heavy pullout by Foreign Institutional Investors (FIIs).

The market, however, made a strong comeback recording the third largest rise of 864 points in the Sensex on Wednesday followed by the biggest ever one-day gain of 1,140 points on Friday after a smooth settlement margin calls and an emergency rate cut of 75 basis points by the Federal Reserve on Tuesday.

The government's reassurance about the health of the economy as well as its statement that India's economic foundation was strong enough to sustain a 9-9.5 per cent growth despite adverse global situation also had a soothing impact on the market.

The BSE 30-share index ended the week at 18,361.66, still down by 652.04 points or 3.43 per cent from last weekend's close of 19.013.70. It touched a weekly low of 15,332.42.

Similarly, the broader S&P CNX Nifty of the National Stock Exchange (NSE) closed the week at 5,383.35, a net fall of 321.95 points or 5.64 per cent from previous weekend's close of 5,705.30.