The Bombay Stock Exchange benchmark Sensex sank by 951 points on black Monday on panic selling by funds, triggered by weak global cues. Similarly, the wide-based National Stock Exchange's index Nifty dropped by 243 points to 4,503.
The government meanwhile said that Indian stock markets are taking cues from the United States and Asian markets, even though the sub-prime mortgage crisis has only moderately impacted the credit and financial flows into the country.
The 10 largest falls of the Sensex
1. Jan 21, 2008 --- - 1,408.35 points
2. Mar 17, 2008 --- - 951.03 points
3. Mar 3, 2008 ---- - 900.84
4. Jan 22, 2008 --- - 875.41 points
5. Feb 11, 2008 --- - 833.98 points
6. May 18, 2006 --- - 826.38 points
7. Mar 13, 2008 --- - 770.63 points
8. Dec 17, 2007 --- - 769.48 points
9. Oct 17, 2007 --- - 717.43 points
10. Jan 18, 2007 --- - 687.82 points
"The sub-prime mortgage market crisis will not directly affect us, because except one private sector bank, which has made its exposure, none of our public sector banks has any exposure to sub-prime mortgage market," Finance Minister P Chidambaram said in his reply to a debate on the Budget 2008-09 in Rajya Sabha.
"But, when crisis moved from sub-prime mortgage market to housing market, and now housing market to the credit market, there is impact upon India. There is impact in terms of credit flows and financial flows. But, at the moment, I believe that impact is second order impact and a moderate impact," he said.
As regards the stock markets, they take cues from developments in the US and Asian markets, he added. "In fact, we now have to track what is happening in Asian markets. Hong Kong, Tokyo and Shanghai open before Indian market opens, and if you watch closely, you will find what is happening in Asian markets is impacting the Indian stock market," he said.