Sensex plunges over 600 points

October 16th, 2008 - 12:43 pm ICT by ANI  

Mumbai, Oct 16 (ANI): The share market plunged over 600 points on Thursday in opening trade due to worries over a prolonged global economic recession.

The Bombay Stock Exchange (BSE), Sensex fell by 640.47 points at 10,168.65 and the National Stock Exchange, Nifty was down by 194.60 points at 3,143.80 in opening trade.

US stocks plunged the most since the crash of 1987 on Wednesday. The Standard and Poor’’s 500 Index sank 90.17 points, or 9 per cent, to 907.84. The Dow Jones Industrial Average retreated 733.08, or 7.9 per cent, to 8,577.91. The Nasdaq Composite Index lost 150.68, or 8.5 per cent, to 1,628.33.

The Nikkei plunged 7 per cent, Hang Seng lost 7.2 per cent, Straits Times shed 6.36 per cent and S&P/ASX fell 6.41 per cent.

Reserve Bank of India (RBI) brought down the cash reserve ratio (CRR) to 6.5 per cent for banks (the second time in a week on Wednesday), releasing Rs 40,000 crore into the banking system to boost liquidity.

Simultaneously, it would release Rs 25,000 crores to banks for a farm loan waiver scheme, and the government doubled the cap on foreign investment in corporate debt to 6 billion dollars from 3 billion dollars as authorities sought to get money flowing through squeezed markets.

On Wednesday, the Sensex closed at 10,809.12 and the Nifty ended at 3338.40. (ANI)

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