labels: stock markets - india, markets - general
Trading suspended at noon; Sensex crashes 1100 points; Nifty slumps 350news
22 May 2006

The correction is finally becoming a full-blooded crash. After a relatively modest drop by recent standards in mid-morning trades, the indices went into a free fall.

The exchanges suspended trading at 11: 56 am for an hour after the indices dropped more than 10 per cent each. If after opening at 1:00 pm the markets slide another 5 per cent, trading will again be suspended.

This is only the second time in history that exchanges have suspending trading. The first was of course during the May 2004 fall after the announcement of the general election results.

The Sensex was at 9827, down 1112 points, while the Nifty was at 2896, a loss of 350 points, when trading was suspended.

Much of the fall is because of selling by traders to meet margin requirements. Brokers and financiers are forcing such sales as margin requirements have also been raised considerably.

Rumors of major brokers and big-time traders being in payment trouble have created a panic situation in the markets.

Asian markets have declined substantially after a mixed opening. South Korea is down 2.5 per cent while Japan, which was trading with gain in early trades, has lost nearly 2 per cent.

Reliance Industries has given up a massive 14 per cent while ONGC has crashed over 10 per cent.

Gail and Gujarat Ambuja have lost more than 20 per cent each while MTNL and Dabur slipped nearly 20 per cent each.

Tata Power has lost more than 19 per cent while Tata Motors is down nearly 19 per cent. ACC and ITC have slipped nearly 16 per cent each while SAIL has dropped more than 17 per cent.

Siemens is down 22 per cent while ABB has fallen 18 per cent. BHEL has lost 16.5 per cent.

Sterlite Industries has crashed almost 28 per cent.

The CNX mid-cap index has lost a massive 581 points or nearly 13 per cent and has dropped below 4000.

Many of the popular mid-cap stocks like Essar Oil, Ashok Leyland, India Cements and TVS Motors are trading with losses of more than 25 per cent each. Titan has lost nearly 30 per cent while IVRCL Infra has lost 28 per cent.

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Trading suspended at noon; Sensex crashes 1100 points; Nifty slumps 350