With foreign institutional investors resorting to large scale selling, Indian equities markets suffered their worst ever mauling in recent times and a key index fell 16 % during the week.
The 30-share benchmark sensitive index of BSE, the Sensex, finished Friday at 10,527.85 pts, down 1,998.47 pts or 15.95 % from its close previous Friday at 12,526.32 pts.
The broader-based 50-share S&P CNX Nifty index of NSE was equally mauled and it finished Friday at 3,279.95, down 538.52 pts or 14.10 % from its close previous Friday at 3,818.47 pts.
The BSE midcap index closed Friday at 3,676.00, down 1,001.8 pts or 21.42 % from its close previous Friday at 4,677.80 pts.
The BSE smallcap index closed Friday 4,355.45 pts, down 1,109.95 pts or 20.31 % from its close previous Friday at 5,465.40 pts.
The mauling of values on the equities markets was relentless throughout the week. While markets were closed Thursday for Dussehra, on all other days of the week stock prices continuously headed southwards.
Monday saw the Sensex lose a whopping 724.62 pts or 5.78 % to 11,801.70 from its close previous Friday at 12,526.32 pts.
The situation was no different on NSE, where the Nifty at 3,602.35 pts fell 216.12 pts or 5.66 % from its close previous Friday at 3,818.47 pts.
Tuesday, the Sensex closed at 11,695.24 pts, losing another 106.46 pts, or 0.90 %, against the previous close at 11,801.70 pts, despite opening higher at 12,068.11 pts.
The mauling continued Wednesdsay and the Sensex closed at 11,328.36, down 366.88 pts or 3.14 % against its previous close at 11,695.24 pts.
The Nifty finished at 3,513.65, down 92.95 pts or 2.58 % from its previous close at 3,606.60.
Markets were closed Thursday but on reopening Friday, bears came back with a vengeance and Indian equities markets saw one of the steepest losses in recent times.
The Sensex, which at one pt was down 1,088.60 pts, made a marginal recovery to end at 10,527.85 pts – but still down 800.51 pts, or 7.07 %, over the previous close.
The situation was no different at NSE where the Nifty was down 6.65 % at 3,279.95 pts, over the previous close at 3,513.65 pts.
Indian’s main equities market, which was not too long ago among the best performers within emerging economies, has shed some 28.20 % in the past month and 43.58 % over the past year, data with the BSE showed.
The markets opened very weak Friday and within minutes into trading, the Sensex had fallen by 1,088.6 pts to 10,239.76 pts, the single largest intra-day fall since Jan 22, 2008, when it had shed 1,111 pts.
The fall of equity values across markets was despite several interventions by the government, the market regulator Securities and Exchange Board of India (SEBI) and the country’s central bank, the Reserve Bank of India.
The global financial meltdown had forced foreign institutional investors to sell their Indian assets, often indiscriminately, to raise funds either to meet redemptions or to pay off costly debts, analysts said.
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