Bribery scandal rattles market

The unearthing of a major bribery scandal by CBI on Wednesday involving officials of some top PSU banks and finance firms rattled the bourses with key benchmark indices – the BSE Sensex and S&P CNX Nifty plunging to two-and-a-half-month lows during the week.

The market fell for the third straight week after hitting record closing high early this month. Realty,banking,construction and some firms whose names were reportedly involved in the scandal took a heavy drubbing.

Stock prices were volatile as traders rolled over positions in the derivatives segment from the near-month November 2010 series to December 2010 series.

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Weakness in overseas markets and selling by foreign funds,too,dampened the sentiment.

The 30-share Sensex slumped by 448.83 points,or 2.29 per cent,to end the week at 19,136.61,its lowest closing level since September 9.

The 50-scrip Nifty also fell by 138.