Biggest Ever Fall for Indian Stock Markets, NSE Closed for one Hour

BSE SensexAs reported earlier that the move of Stock Market Watchdog SEBI to curb stock market rise by hot-money invested by some FIIs, the stock markets have reacted very badly to the news. SEBI proposed a ban on P-Notes after the recent rally in stock markets. FIIs investments through P-Notes accounts for nearly 51% of their total investment as per the August 2007 records. The Stock markets opened with a huge gap and immediately went down to touch the lowest level of 5107 for NSE Nifty.

The trading of Stocks at Stock markets was halted after a sharp downfall. The markets opened again after one hour. Bombay Stock Exchange Sensex was down by nearly 8% with a loss of over 1500 points. This is the biggest ever intra-day fall for Indian Stock markets. The markets were closed for one hour soon after the trading started.

The markets have now recovered a bit from earlier losses. The stock market analysts believe that the selling pressure may continue as the P-Notes is the main entry route for many FII investments in stock markets. SEBI’s move to ban P-Notes is not a good thing for the booming Indian Stock Markets. The markets may see a correction of 2000 points from its current levels.

At 11.30 am, NSE Nifty was down by 315 points with a loss of nearly 5.57%. NSE NIFTY is currently at 5354.

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