HUGE FALL IN MARKET SEEN ON WEDNESDAY,
The BSE Sensex fell 2.8 percent on Wednesday to its lowest
close in more than a month as economic jitters swept global
financial markets raising concerns about foreign fund flows.
Investors have begun worrying a global economic recovery
will not be as quick or robust as many had hoped. Losing
stocks outnumbered gainers in the ratio of more than 3:1 in
the broader market, while volume was average at 400
million shares.
Financial stocks fancied by foreign portfolio investors led the fall, but auto and
cement stocks bucked the trend after auto sales rose for the fifth consecutive
month and investors bet on infrastructure spend by the government. Corporate
earnings will be the next driver for the market, in the short term. They are
expected to be better than the previous quarter but for a longer rally it depends
on how the government takes the growth momentum forward.
The BSE Sensex fell 2.8 percent on Wednesday to its lowest
close in more than a month as economic jitters swept global
financial markets raising concerns about foreign fund flows.
Investors have begun worrying a global economic recovery
will not be as quick or robust as many had hoped. Losing
stocks outnumbered gainers in the ratio of more than 3:1 in
the broader market, while volume was average at 400
million shares.
Financial stocks fancied by foreign portfolio investors led the fall, but auto and
cement stocks bucked the trend after auto sales rose for the fifth consecutive
month and investors bet on infrastructure spend by the government. Corporate
earnings will be the next driver for the market, in the short term. They are
expected to be better than the previous quarter but for a longer rally it depends
on how the government takes the growth momentum forward.
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