Sensex Biggest Ever Fall

The Sensex fell 1,111 points in the intraday trading today. This is the biggest ever fall, after the 826 point drop of thursday. The biggest reason for this fall is the open interest position that was created by the brokers. After a decline of arround 500 points 11:30 the market plunged to 9,829 at 11:55 crossing the 10% circuit breaker. The trading was stopped for one hour and the investors & brokers kept on speculating that the next circuit breaker of 15% would be hit very soon. Panic started to creep into the minds of investors as they watched their hard earned money disapear. The SEBI charimar Damodaran came in and told everyone that there is no Liquidity problem.

One hour later when everyone was expecting further blood on the street the market took a spledid change. Within few minutes the market started trading above the 10,000 mark and at the end of the day things settled at 10,481 point or a fall of 460 point. This correction was very much expected by everyone but no one could have imagined that it would happen in such dramatic manner.