Bombay Sensex in Big Sell-Off

Econintersect reported by Sanjeev Kulkarni:  The Mumbai stock market was down for the ninth straight day Thursday.  In morning trading Friday, however, it is rebounding.  Downward pressure on markets around the world has been reinforced in India by domestic issues, including a 50 basis point interest rate hike by the Reserve Bank of India (RBI) and developments in the telecom scandal trial. Thursday the market lost 1.4% to bring the nine day slide to 7.1%.

From The Economic Times:

 K K Venugopal, the CBI lawyer, said the agency could seek further details from business tycoons Ratan Tata and Anil Ambani. The statement triggered further jitters among investors on Dalal Street, leading to panic selling in the second half of the session with the sensex finally settling at 18,211, down 259 points. Over the last nine sessions, the sensex has lost nearly 1,400 points, or 7.1% while investors wealth, measured in terms of BSE’s market cap, is down by about Rs 4.30 lakh crore to Rs 66 lakh crore now.

In mid-day trading Friday (May 6), the Bombay Sensex is one of the few Far East indexes to be positive.  At 12:15 the Sensex is up 215 points, or 1.2%, at 18,425.

Update after Bombay market close 5/6/2011:

The Bombay Sensex closed with a gain of 1.7% Friday, which ended a string of nine consecutive lower closes.  With the exception of New Zealand (+0.2%) the rest of the major stock markets in the Far East closed lower, led by Seoul and Tokyo, each down 1.5%.

Sources:  The Economic Times and Yahoo Finance