News

Nuke tests in subcontinent cast gloom in bourses
The fallout of the nuclear tests conducted by India during the first fortnight of this month cast its shadow on the country's capital market during the week ending May 29. The market witnessed depressed conditions with the BSE sensex registering a steep decline of 210 points due to free fall in the index-based stocks, following heavy selling pressure by foreign institutional investors and speculators. Marketmen attributed the bearish phase to various reasons including, postponement of the World Bank loan worth $ 890 million, heavy fall in the rupee value against the American greenback, slide in GDR values in the global market, Standard and Poor's revision of India outlook from stable to negative and worldwide fall in the share prices and poor financial results by Tisco, ACC and IPCL the market opened on a better note, after moving in a narrow range. From Tuesday onwards, the market then continued slide in the next four trading sessions. The BSE sensitive index crashed by 210.71 by surpassing the psychological barrier of 3700 to close at 3686.39 points against the previous close of 3897.10 points. The rupee value which also reported continuous decline throughout the week registered a net loss of 102 paise against the dollar to hit 41.68/70 against the previous week's close of 40.65/67. The National Stock Exchange (NSE) will conduct a special budget trading session after the normal session on June 1.