Indian Markets Plunge Over US Worries

(IDEX Online News) – Worries about the US economy triggered a major fall in the Bombay Stock Exchange (BSE). “On Friday, August 5, the benchmark Sensex plunged more than 700 points before recovering to close 387 points down at the end of trading. Investors were left poorer by $30 billion (Rs. 1.33 trillion) at the end of the day.

Among the biggest losers of the day were IT giants Tata Consultancy Services (TCS) and Infosys, as well as Reliance Industries, India’s largest private sector enterprise. The ICICI Bank, prominent among Indian diamond financing banks, was also among the big losers.

The market regulator SEBI said all was well with the Indian market as its risk management system was working well and settlements were taking place as usual. At the weekend, it was still unclear how overall consumer sentiment in the country had been affected.

The Indian gem and jewelry industry did not react immediately to the market crash, and buying continued unabated at the India International Jewellery Show (IIJS). The strong resistance to higher diamond prices, which had manifested itself from the outset of the show, was sustained over the weekend.

Exhibitors expressed concerns that there might be order cancellations, once buyers returned home and had time to reconsider the situation.

What the near-term future held was unclear to most as the global stock market events were all unrelated to the gem and jewelry industry and no one was able to predict what might happen.