Sensex hits 26-month low as share prices crash

Share prices across the bourses plummeted with the BSE and the NSE taking the lead as uncertainties caused by the hawala scandal triggered massive speculative selling. The 30-share BSE Sensex plunged to a 26- month low of 2,838.57 points, down by 58.13 points from Tuesday’s close. The index dropped to the day’s low of 2,823.28 points before recovering slightly at the end of the session. The composite 100-share national index shed 30.76 points to close at 1,316.59 recovering from the day’s low of 1313.35. The Crisil index for 500 equity shares also fell by 11.83 points to close the day at 587.40. Blue chips on the NSE also suffered major losses on the first day of the new weekly settlement. Brokers said the hawala scandal in which the CBI has chargesheeted several political leaders cutting across parties has fuelled the downslide on stock markets. Slide in the market was also activated by rumours that the Prime Minister, Mr. P. V. Narashimha Rao, had resigned. “Rumours about Mr. Rao resigning weakened the market. There was panic selling and short sellers depressed the market,” said a dealer who declined from being identified.

Anticipatory bail for 6 in Gordon Woodroffe case

The Madras High Court has granted anticipatory bail to six persons including two directors of Gordon Woodroffe Ltd, who apprehended arrest on a criminal complaint filed against Gordon Woodroffe, Shoes Specialities Pvt Ltd (SSPL) and 20 others by Tracstar Investment Ltd. Granting the bail, Mr. Justice C. Shivappa, said, “The six persons should report daily at the Central Crime Branch, Egmore, at 5 p.m. for two weeks. They shall not leave the jurisdiction, shall not tamper with witness and shall produce all relevant documents as required by the investigating officer.

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