No matter the recent bull run on the bourses, the shadow of the US sub-prime crisis, Sebi?s new regulatory regime on participatory notes, a hike in the cash reserve ratio and the uncertain political climate across the border had combined to keep the equity markets highly volatile in the last one month.
The 30-share Sensex saw an intra-day volatility of over 300 points in 20 of the 24 trading sessions in the last one month. The highest intra-day volatility was of 1,533 points witnessed on October 17.
BSE data say the Sensex went up 8.30% or 1,461 points from 17,491 points on October 8 to 18,907 points on November 9. The Sensex touched 20,000 points on October 29. But, it plunged 4.5% or 918 points since October 30 to date after the Reserve Bank of India?s decision to hike the CRR by 50 basis points. All the sectoral indices?the BSE auto, bankex, BSE-IT, BSE oil & gas, BSE PSU and the BSE realty?lagged during the period.