MUMBAI: Black Friday is the apt term for the bloodbath the market has witnessed today. The Sensex has lost 1,998.47 points in the last one week (3 – 8 October) thus losing 16 per cent. In the midst of this mayhem, almost all media and entertainment stocks witnessed their 52 week low at the closing bell on Friday on the Bombay Stock Exchange.
The highest loss was witnessed by Tips Industries, which was down 37.22 per cent over the last one week. The least hit amongst the media and entertainment stocks was Shree Ashtavinayak Cine Vision, which was down 3.89 per cent.
Meanwhile, the Sensex was lighter by 800 points by the end of today’s trade. Last Friday, 3 October, the Sensex stood at 12,526.32 points as compared to 10,527.85 points today – 8 October. While the intra-day low was 10,239.76 points, the Sensex did recover slightly in the light of the statement issued by Indian finance minister P. Chidambaram.
"On Wednesday, the Cabinet reviewed the financial situation in India and authorised me to issue a statement on behalf of the Cabinet/Government. We have identified that the main problem is liquidity, and we have assured the people that we will respond swiftly and take steps to infuse more liquidity according to the needs of the situation. Reserve Bank of India was advised to take appropriate steps in this behalf," he said.
However, this has been the fifth consecutive day when the markets have closed on a weak note. Today’s has been the worst ever weekly close for the Sensex and the Nifty. The Nifty closed at 3279.95, which was down 233.7 points.
Chidambaram also welcomed the decision of the Reserve Bank Of India (RBI) to implement a further reduction in the CRR by 100 basis points, thus making a total reduction of 150 basis points following the cut in the CRR by 50 basis points on 6 October, 2008. “The Governor, RBI has also assured the Government that the RBI is keeping a close and continuous watch on the situation and will take appropriate steps according to the evolving situation,” said Chidambaram.
The finance minister also received a number of representations from banks, other financial entities, corporates & small businesses to address the issue of liquidity in a comprehensive manner.