The stock market crashed recording the sharpest ever fall of about 1,800 points within minutes of opening on fears of market regulator Sebi's move to curb overseas derivative (participatory notes), but cut the losses by nearly half on assurances from Finance Minister P Chidambaram.
Within minutes of opening, the stock market benchmark index, Sensex crashed by 1,743 points, prompting suspension of trade for an hour a fallout of regulator Sebi's move to curb Foreign Institutional Investors.
The 30-share index, tumbled to 17,307.90, a fall never seen before.
The fall forced the trading to be suspended for one hour on BSE.
The Sensex, recovered about 900 points to 18,160 points after trading resumed following an hour long suspension.
The National Stock Exchange's wide-based Nifty also recovered but was down 4.70 per cent at 5,401.45 points in the reopened session.
While the fall was induced by Sebi's discussion paper last night proposing to curb PNs and other offshore derivative instruments, the recovery was on assurance from Chidambaram that the government was not against the PNs.
