Black Monday again: Biggest ever point fall for markets

21 January 2008

It was a highly dramatic and scary day for markets as markets saw their biggest ever fall. It was the worst day of trading in our trading history as the pace of the fall was unnerving. We started weak and with heavy bouts of selling was seen during the day with Sensex and Nifty down almost 12% at one point of time. Sensex went below 17,000 mark during the course of the day and Nifty sub 5000 mark.

BSE was shut for a brief period of time however it resumed trading immediately. Later it recovered Sensex recovered 700 points from the day's low. and finally Nifty closed down 8.5% and Sensex was down 7%.

Before this the markets saw the second highest point fall on May 18, 2006; Sensex was down 826 pts (6.76%) on account of Government circular on taxing investment gains; heavy selling by FIIs, retail investors and a weakness in global markets.

On April 28, 1992; Sensex was down 570 pts (12.77%) on account of Harshad Mehta securities scam. On May 17, 2004; Black Monday. Sensex was down by 565 points on concerns over NDA losing election to loses BJP.

It has not only been the pressure from global peers but on the domestic front also with increased unwinding pressure the fall has been accentuated.

Even experts were a bit shaken and shocked with the nasty fall. According to Raamdeo Agarwal with global news not favourable there might be a further fall in the markets. He feels that Indian markets can't remain isolated when selling is seen in markets across globe including Asia.