Domestic, not global issues, behind Sensex's 400-pt fall
08 Dec 2011
Plagued by poor fundamentals, Indian markets chose to decouple from global markets and reacted vigorously to domestic news flow that was tinted red today. The opposition party's demand for resignation of P Chidambaram only added to market woes, further denting confidence of traders.
When one compares the 2008 global meltdown to the current volatility in equity markets, the key difference is the inability of world governments to take tough policy actions.
The barometer index, the BSE Sensex shut shop at 16488.24 down 388.82 points or 2.30% and the Nifty shut shop at 4943.65 down 118.95 points or 2.35%.
The breadth of the market was disappointing. About 883 shares advanced, 1914 shares declined, and 942 shares remain unchanged.