Stock markets plunged on Wednesday for the second time in as many weeks with the benchmark BSE Sensex closing below the 15,000-mark after falling 615 points as world markets went into a tailspin on US housing woes.
The Bombay Stock Exchange’s barometer Sensex registered its third-biggest fall in absolute term and settled at 14,935.77 points, a net loss of 3.96 per cent from Tuesday’s close of 15,550.99. The index touched a low of 14,910.52 and a high of 15,344.02. All 30 stocks in the BSE index declined. The index has ended below the 15K level for the first time since July 11. On July 27, it had crashed 541 points following a melt-down in global stock markets led by fears of a credit crunch in the US. The broader S&P CNX Nifty of National Stock Exchange (NSE) also plunged by 183 points or 4.04 per cent to close at 4,345.85 from previous close of 4,528.85. This is the fourth- biggest fall in the NSE history.
Marketmen said the crash was attributed to worries over the sub-prime loan industry in the US and that it might prompt investors to withdraw funds from riskier assets. They said weakening US stock markets, following a fall in housing sale, and a credit crunch might impact markets across the globe.