Sensex tanks 526 pts; US Fed sends world markets plunging
Equity markets across the world plunged sharply on Thursday, with Indian markets registering their biggest percentage fall since September 22, 2011, as jittery investors dumped equities due to fears about a massive pullout of funds by portfolio investors after the US Federal Reserve signalled it would begin scaling back its stimulus measures later this year if the economy is strong enough.
Worry over withdrawal of funds by foreign institutional investors and its consequent impact on the rupee as well as financing India’s ballooning current account deficit jolted investor sentiments in this country.
The Sensex tanked 526.41 points (2.74 per cent) to slip below the psychological 19,000 level, to end the trading session at 18,719.29 as FIIs offloaded equities worth `2,094.06 crores, according to provisional Bombay Stock Exchange data.
The Nifty slumped 166.35 points (2.86 per cent) to end the day at 5,655.90. The fall was precipitated amid a sharp depreciation in the rupee, which hit a record low as the US dollar rallied higher against all major currencies.
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Congress, JMM may form govt in Jharkhand
Age Correspondent
New Delhi, June 20
There are indications the Congress and JMM may come together to form an alternative government in Jharkhand, under President’s Rule for the past five months after the Arjun Munda government fell on January 8.
B.K. Hariprasad, newly-appointed AICC general secretary in charge of Jharkhand, will hold talks with the state Congress leadership and the JMM in Ranchi on Friday.
The JMM, which backs UPA-2 from outside, has been keen to form a government with the Congress after it broke with the BJP last year.
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