Market Overview

Since hitting its life-time high of 12,612 on May 10, the markets have been in the grip of bears. Massive corrections started from May 15, with the Sensex losing 463 points. The index ended down 826.38 points, or 6.76 per cent, on May 18, the largest fall in absolute terms in its history. As many as 2,241 stocks out of 2,557 listed on the BSE recorded losses. The fear of rising interest rates, swelling US current account deficit and the meltdown of the prices on the London Metal Exchange shook sentiments. The Sensex sank 1,112 points to hit the 10 per cent lower circuit on May 22, though the index recovered 654 points to close with a loss of 457 points, the day recorded a swing of over 1,300 points. The Sensex lost over 13 per cent in the month of May. Sentiments remained bearish during the first week of June. The Sensex fell 3.95 per cent. Recovery in the second week of June helped the markets regain some of its lost glory. The week saw huge swings. On June 13, the Sensex lost out all gains of 2006 and ended at a six-month low of 9,062.65 points, down 413.50 points from its previous close. The index ended at 8929.44 on June 14, the first below-9,000 level closing this year. The Sensex added over 955 points in two days (June 15 and June 16) to end at 9884.51 on June 16.