Red October

Sensex Sinks To Lowest Level Since Nov 2005 .On Friday afternoon when one of the most brutal sessions ever on the bourses finally closed, battered investors were left taking stock of the damage—the second biggest single-day fall in the sensex in terms of points (1,071) and the third biggest single-day percentage loss (10.9%). The sensex closed at 8,701.07, a level last seen on November 24, 2005. Every single share in the 30-scrip index ended in negative territory, with DLF (-24%) and Ranbaxy Laboratories (-18%) the worst-hit.The market was disappointed that the RBI had left key rates unchanged while announcing the credit policy. But it was also spooked by rising concern that a global recession has already started to bite. World markets had signalled as much earlier in the day. Tokyo’s Nikkei fell 9.6% to its lowest close in five years, while Seoul’s Kospi plunged 11%. Samsung, the South Korean company that is the largest chipmaker in Asia, dived 14% after reporting a 44% fall in Q3 earnings. Sony Corp, the world’s second largest consumer electronics company, fell 12% after sharply cutting its profit forecast on Thursday. Brokers warned this could be the start of steep falls in the stock prices of biggies that depend on exports to the US and Europe for much of their profits. The rupee breached the 50-mark against the dollar in intraday trade as the greenback posted gains against most major currencies. After hitting an all-time low of 50.15, the rupee closed at 49.95/96. Friday’s close marked the 11th straight week the rupee has lost ground, its longest losing streak since Dec 2005.

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