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Sensex falls 2.9 pct to lowest close in 3 years
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The Sensex closed 2.9 percent down on Thursday to its lowest close in 3 years, as worries over the economy remained despite rate cuts by the RBI yesterday.
The benchmark closed at 8198, dragged down by index heavyweights Reliance Industries (down 5 percent) and ITC (down 3.5 percent).
Ranbaxy and ICICI Bank were among the top Sensex losers, falling over 9 percent and 5 percent respectively.
The banking sector suffered the most with its index slipping 4.15 percent. Shares in Kotak Mahindra dropped 7.5 pct while SBI slipped 2.4 percent.
Satyam Computer Services, which was the most traded stock on the BSE, fell 7.5 percent to close at 35.1 rupees.
Though RBI’s rate cuts failed to lift investor sentiments today, do you think this move will help in the long run? Or more needs to be done to end this crisis of confidence?
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So Sensex loves to go down these days.It fell by 248 points. Did ONGC report play a spoiler?The corporate governance issue or rather lack of it in Indian context is playing on FIIs sell off psyche.There is a fear that more Satyam stories may get to unfold.
A lowering of 50 basis points in repo rate is neither here or there.It is too little. It ought to have been atleast 1%.It is imperative that c.bank gets to do more.Why does c.bank need to think that it is constrained by an election code.This is a fiscal measure and can be be effected any time.
The economic slow down is more acute than our response is showing.Let us not feel shy of bringing down repo rate to 2%.Also enforce penalty on banker unwilling to lend.
Guess we need a confidence booster than anything else right now.. wonder what can provide for that?!