Sensex crashes by 617 points

Apr 03, 2007 Stock Market

The stock markets opened the first trading day of 2007-08 with a double whammy, with the Sensex plunging almost 617 points to close at 12455. This is among the largest single day falls in almost two years now. The Nifty closed at 3634, a fall of 187 points.

The RBI announcement about the hike in CRR (50 basis points) and repo rate (25 basis points)seemed to have caught the markets by surprise, and both the Sensex and Nifty began slipping lower and lower as the session progressed.

Bank stocks took the brunt of heavy selling and the BSE Bankex closed at 6,153, a fall of 6%. Keeping it company was the BSE Auto Index, which also fell 6% to 4570. All the Sensex stocks were also in the red. FIIs were net sellers to the tune of almost Rs.1000 crore in March.

Those with an eye on the long term could hunt for top level stocks which have begun assuming proportions of being bargain buys now after this crash.

Tags: Sensex, Stock Market Crash, RBI rate hike