From the article linked above:
The 30-share Sensitive Index had tumbled by 537.76 points, the biggest intra-day fall since September 11, but gained partially toward the end but closed 2.9 per cent lower at 13,399.43.
Now the question is: will India's stock market have any effect on American markets? From what I was able to gather from the article, much of the decline was fueled by a large drop in banking stocks.
Stock brokers said RBI's decision to hike CRR of banks by 50 basis points to tighten liquidity and contain inflation, triggered the fresh round of selling, particularly in banking sector stocks by foreign funds and retail investors.
I think "RBI" stands for the Royal Bank of India and CRR stands for Cash Reserve Ratio. Although the acronyms are not defined in the article.
1 comment:
Dear All,
Your blog is nice and informative. We think our post will be quite useful and informative for your visitors. We have witnessed Sensex and Nifty showing quite handsome upward rally around new year time. But now on 2nd Jan again Indian stock marketis sluggish and is struggling to come up. We have posted in recent post that we can expect market to come down in between 26December-07 to
5- Jan-08.
Now on 2nd Jan FII has reentered into the market and game of seesaw with Nifty
graphs has started again.
We advise everyone whether they are working in Indian stock market or any other expect high volatility in all markets as sentiments of one
market effects other.
Always remember less profit or no profit is better then loss
Regards
Sharetipsinfo team
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