Finance Minister, P. Chidambaram, today sought to allay fears over Fed tapering stating that the country is better prepared to deal with the situation arising out of a cut in US bond purchases. He said the Government felt markets had already factored in the impact of such a move.
Chidambaram's statement had some impact on the stock market as the indices rebounded a bit. The BSE Sensex had opened on a positive note but panic selling had set in.
Selling spree
Technically, the BSE Sensex, at about 12.44 p.m., was down by over 100 points from its previous close.
The Sensex had tanked nearly 370 points from the day's high in morning trade. It is still off 267 points.
The Sensex touched a high of 21,017.45 points and a low of 20,646 before trading at 20,750.33.
It is down by about 109 points from the previous day's close of 20,718.73. The Sensex opened with a gap of 100 points at 20,959.
Biggest losers
During the session, ICICI Bank was the biggest index loser, down by 2.9% to Rs 1,065. HDFC shed 2.57% to trade at Rs 777.90, Airtel lost 2.44% to quote around Rs 320, L&T was down by 2.43% at Rs 1,066 and ONGC eased by 2.43% to Rs 275.
Top gainers
Among the gainers were Wipro, up by 2.42% at Rs 535.05, Sun Pharma rose 2.04% to 584.55, Jindal Steel gained 2.01% to Rs 253.45, TCS added 1.96% to Rs 2,094.60 and Sesa Sterlite was up by 1.91% at Rs 205.20.
Sector-card
On the BSE, Bankex dived 2.28% and Capital Goods 1.52%. Realty was down 0.65 per cent.
IT (up 2.09%), Healthcare (+1.11%) and TECK (+1.47%) were among the gainers.
Liquidity tightening
The Indian markets, which responded positively to the RBI's move to keep the repo and CRR unchanged yesterday, are now looking at the possibility of liquidity tightening, albeit gradually.
It is true that the US Fed has not specified a timeframe for ending the bond buying programme and has set a modest initial figure of $10 billion a month cut in the stimulus programme-from $85 billion to $75 billion a month.
But a general view is that the tapering might gather pace if the US economy continues its recovery. The US Dow Jones index yesterday celebrated the announcement of outgoing Fed Reserve Chairman Ben Bernanke rallying by about 290 points.
In Asia, while Japanese Nikkei index was up strongly by about 250 points, two other key indices -- Singapore Straits Times and Hong Kong's Hang Seng were only marginally trading higher.
Mirroring fears over rupee weakening against the US dollar because of possible FII selling, the rupee was trading down at 62.27 against the US dollar.
Chidambaram's statement had some impact on the stock market as the indices rebounded a bit. The BSE Sensex had opened on a positive note but panic selling had set in.
Selling spree
Technically, the BSE Sensex, at about 12.44 p.m., was down by over 100 points from its previous close.
The Sensex had tanked nearly 370 points from the day's high in morning trade. It is still off 267 points.
The Sensex touched a high of 21,017.45 points and a low of 20,646 before trading at 20,750.33.
It is down by about 109 points from the previous day's close of 20,718.73. The Sensex opened with a gap of 100 points at 20,959.
Biggest losers
During the session, ICICI Bank was the biggest index loser, down by 2.9% to Rs 1,065. HDFC shed 2.57% to trade at Rs 777.90, Airtel lost 2.44% to quote around Rs 320, L&T was down by 2.43% at Rs 1,066 and ONGC eased by 2.43% to Rs 275.
Top gainers
Among the gainers were Wipro, up by 2.42% at Rs 535.05, Sun Pharma rose 2.04% to 584.55, Jindal Steel gained 2.01% to Rs 253.45, TCS added 1.96% to Rs 2,094.60 and Sesa Sterlite was up by 1.91% at Rs 205.20.
Sector-card
On the BSE, Bankex dived 2.28% and Capital Goods 1.52%. Realty was down 0.65 per cent.
IT (up 2.09%), Healthcare (+1.11%) and TECK (+1.47%) were among the gainers.
Liquidity tightening
The Indian markets, which responded positively to the RBI's move to keep the repo and CRR unchanged yesterday, are now looking at the possibility of liquidity tightening, albeit gradually.
It is true that the US Fed has not specified a timeframe for ending the bond buying programme and has set a modest initial figure of $10 billion a month cut in the stimulus programme-from $85 billion to $75 billion a month.
But a general view is that the tapering might gather pace if the US economy continues its recovery. The US Dow Jones index yesterday celebrated the announcement of outgoing Fed Reserve Chairman Ben Bernanke rallying by about 290 points.
In Asia, while Japanese Nikkei index was up strongly by about 250 points, two other key indices -- Singapore Straits Times and Hong Kong's Hang Seng were only marginally trading higher.
Mirroring fears over rupee weakening against the US dollar because of possible FII selling, the rupee was trading down at 62.27 against the US dollar.
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