Markets turn nervous, Sensex crashes by 275 pts

Markets turn nervous, Sensex crashes by 275 pts
ENS ECONOMIC BUREAU

Mumbai, July 24: Investors across the country suffered a severe jolt as stock markets witnessed a major sell-off on Monday. As much as Rs 41,480 crore of investors wealth -- or market capitalisation -- melted away with stocks falling like nine pins and benchmark Sensex crashing by 275 points. Reasons: the continuing political uncertainty, Reserve Bank measures to boost rupee and heavy selling by foreign investors.

In the specified group, only eight side stocks showed fractional gains on scattered support. The market capitalisation of the BSE declined by Rs 41,480 crore to Rs 7,08,109 crore as the panic selling led to huge losses in key shares in the specified group.

However, unlike past instances of panic selling, the broking community is a divided lot on the future course of action. Market players feel that the 6 per cent fall in the Sensex was an over-reaction on the part of the market put the onus on operators for this sharp fall.