Sensex sheds 571 points
The strong rebound on the bourses witnessed yesterday, 2 July 2008, proved short-lived as share prices dived once again today. A surge in oil price to a record high above $144 a barrel and overnight fall in US stocks that pushed the Dow Jones Industrial Average to bear market, weighed on the investor sentiment with Sensex falling more than 700 points at one point of time. The Sensex ended just above 13,000 mark while Nifty ended below 4,000 mark. Tata Steel fell more than 11%. European markets were in red.
All the sectoral indices on BSE were in the red. Power, banking realty and metal stocks slumped. The market breadth was weak.
Oil, India's biggest import, rose to a fresh record high above $144 per barrel on Wednesday, 2 July 2008. Oil has risen more than 40% in calendar 2008 so far and it is the key reason for the turmoil of Indian equities. A section of the market reckons that only a sharp fall in oil prices can bring out a meaningful recovery in battered Indian stocks.
The 30-share BSE Sensex slumped 570.51 points or 4.18% at 13,094.11
S&P CNX Nifty was down 167.6 points or 4.09% at 3,925.75.
As per the provisional figures on NSE, the foreign institutional investors sold shares worth Rs 606.92 crore while domestic funds bought shares worth Rs 526.1 crore today, 3 July 2008.
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