The BSE 30-share Sensex lost 207.59 points or 2.33%, to 8,695.53. At the day's low of 8,649.40, the Sensex lost 253.72. The Sensex opened 267.16 points higher at 9,170.28. At the day's high of 9,182.80, the Sensex gained 279.68 points in early trade.
The S&P CNX Nifty fell 54.25 points or 2% to 2654. Nifty November 2008 futures were at 2643.25, at a discount of 10.75 points as compared to the spot closing.
The market breadth, indicating the overall health of the market, was negative after strong star as small and mid-cap shares succumbed to selling pressure.
Volatility may rise in the coming days ahead of the derivatives expiry for November 2008 series on Thursday, 27 November 2008. As per reports, rollover of Nifty positions from November 2008 to December 2008 series stood at 30%, as on Monday, 24 November 2008.
Finance Minister P Chidambaram on Monday, 24 November 2008, said India is likely to miss the revenue and fiscal deficit targets in the current financial year as the government wants to spend additional money to boost the aggregate demand in the economy which has shown signs of slowing down. Thus, he said, the Centre would have to go for additional borrowings this year to meet higher expenditure. Higher government borrowing will restrict a further fall in interest rates.
The RBI has aggressively cut rates over the past two months to support growth and cushion the economy against the spreading global turmoil. The repo rate, the main short-term lending rate has been cut by 150 basis points to 7.5% since October 2008 and the cash reserve ratio, the proportion of deposits that banks have to keep with the central bank, has been reduced by 350 basis points to 5.5%.
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