Friday, October 24, 2008

BLACK Friday for the market

Today was the worst day in the history of the capital market. Not only Indian stock markets fell, but all world markets fell nearly 8% - 10%.

Sensex (BSE India) –10.96%
Nifty (NSE India) –13%

Nikkei (Japan) –9.60%
Hang Sang (Hong Kong) -8.3%
Straits times (Singapore) -8.3%
UK -9%
Germany -11%
France -10%

And so on…

Today soon after the RBI announced its credit policy, markets witnessed one of the worst trading sessions following meltdown in global markets on concerns of slowing global economy and recession.

After infusing Rs 185000 crore liquidity into the banking system this month, the RBI on Friday surprised the market by keeping interest rates constant which was unexpected from the market.

In addition this, Credit Suisse said that the recession has already begun in the US, UK and Euro zone. The UK GDP has declined 0.5% on the quarter-on-quarter basis, which was the first contraction since 1992. Commodities are also feeling the heat of this free fall in the global markets. Gold fell below USD 700 per ounce to a new 13-month low.

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