The contagion effect of U.S. bad loans dealt a big blow to Indian retail investors on Monday as the domestic benchmark stock index, the BSE 30-share Sensex, lost 1408.35 points or 7.41 per cent to close at 17605.35.
This was the largest ever fall in the history of the Indian stock index, which crossed 21,000 points only a few days ago.
The NSE 50-share Nifty lost 496.50 points or 8.70 per cent to close at 5208.80.
“The fall needs to be seen in the context of the sharp run- up witnessed in the last quarter of 2007 and the increasing volatility in the global markets amidst concerns about future economic growth. In that sense, this consolidation being witnessed in recent days is largely due to the growing risk aversion in global markets and was along expected lines,” said Sukumar Rajah, chief investment officer (equity), Franklin Templeton Investments India.
Other markets in the region also moved down sharply.
The decline in the Sensex can be attributed to several technical factors.
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