Mkt recovers at reopen, investors lose trillions

Sensex on Tuesday tumbled by 2,029 points, or 11.53 per cent, leading to suspension of trading on the bourse for an hour.

It recovered 844.28 points to be quoted at 16,420.58 when the suspension was removed.

But the index was still lower by 1,184.77 from Monday’s close of 17,605.35 points.

The National Stock Exchange Nifty was lower by 388.60 points at 4,820.20.

According to norms, if the stock market witnesses a movement of 10 per cent on either side, the trading has to be suspended for an hour. Based on the closing level of 20,286.99 points on December 31, the circuit limit is 2,028 points.

This was the fourth time in the history of Indian stock market that the trading was halted.

The BSE resumed trading at 1055 hrs.

The Sensex has lost 25 per cent since January 10, when it hit its peak of 21,206.77 points. Nifty has come 28 per cent below its high of 6,357.10, reached on January 8.

Finance Minister has said he is hopeful "that there would be a new beginning for the markets at 1055 am".

Hong Kong stocks opened down 5 per cent, amid turmoil across Asian markets as investors grow increasingly pessimistic about the US economy.

Investors lose Trillions

Investors on Tuesday lost over Rs 6 trillion within minutes of opening of the Bombay Stock Exchange, which was immediately suspended for an hour after the 30-share barometer index, Sensex, hit the circuit limit of 10 per cent.

This loss of Rs 6,54,887.85 crore comes on top of over Rs 11 trillion loss suffered by investors on the Dalal Street in the last six days.

"Small investors should stay away from the markets as of now. Let the market normalise and the volatility reduce," said domestic brokerage firm SMC Global Vice President Rajesh Jain.

"Better to out when in doubt" he said, adding that there is too much of panic in the markets and it is better to stay away from it.

The Sensex lost 5,251.15 points in last seven trading sessions including Tuesday’s early morning trade till suspension, while investors' wealth -- measured in terms of cumulative market capitalisation of all the listed companies -- has declined by a whopping Rs 18,40,173.31 crore.