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- By Parinda News Bureau, April 08, 2006, 11:50 IST
Mumbai: Speculations about a promissory notes problem as also suspension of some foreign funds caused panic and the market swung by a huge 366 points during the session that started with strong hopes of a liberal bonus from IT major Infosys.
The market recovered partially after a timely denial by the Securities and Exchange Board of India (SEBI) on the promissory note problem.
This is the largest intra-day swing after 18th May, 2004 when the market hovered in a range of 401.52 points.
After flaring up to an all-time high of 11,930.66 in early trading today, the sensex later came under a heavy onslaught of selling and slid to the day's low of 11,564.99 as rumours regarding promissory notes and suspension of some Foreign Institutional Investors (FIIs) spread like wild fire in the market.
The sensex later ended the day at 11,589.44 against Wednesday's close of 11,746.90, a net loss of 157.46 points or 1.34 per cent.
Investors credited the sensex's initial flare up to near 12,000 mark to expectations of a liberal bonus from the IT major, prompted by the company's announcement that the board meeting to be held on 14th April will consider a bonus issue.
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