Sensex Drops 98 Pts On Border Firing
Firing on the border with Pakistan, coupled with fears of FII selling pressure in the face of weakening Asian markets and a sliding yen trigerred off a panic wave on major bourses yesterday.
The BSE sensex closed at 3,112.95, down 98.36 points from the previous close. The Nifty closed at 906, down 25.4 points from Friday's close.
Most of the damage was caused by speculative rather than institutional selling. The market collapsed on very low volumes in the absence of any buying interest. The BSE clocked a turnover of Rs 754.59 crore while the NSE's turnover for the day stood at Rs 1035.66 crore.
The panic was sparked off by cross-border skirmishes which raised fears of a possible war. " There were also fears that FIIs might book profits for the time being in the face of the weakening yen. If the yen continues to weaken, we could witness genuine selling today," said a source at an FII brokerage.