Mumbai: After market regulator Securities Exchange Board of India (SEBI) blacklisted 24 players, including some brokerages, late on Thursday for alleged manipulation of initial public offerings, the markets have been on a roller coaster ride.
Shares fell more than 4 per cent early on Friday.
The benchmark 30-share BSE index was down 3.3 per cent at 11,441.55 points by 9.57 a.m. (0427 GMT), after falling as much as 4.1 per cent.
The index had gained 26 per cent from the start of January to Thursday's close on the back of foreign portfolio investment of $3.4 billion.
The S&P CNX Nifty fell as much as 4.7 percent to 3,342.85 points before recovering to 3,459.70.
The Securities and Exchange Board of India said late on Thursday it had barred 24 entities from the securities market after investigating alleged manipulation of initial public offerings.
It said these players appeared to be key operators in various IPOs during 2003-2005, "tilting the allotment process to their favour".
The violent reactions early on Friday morning were predictable and the swings are expected to last for a few more days.
Analysts tell Moneycontrol.com on what to buy during such volatility.
Experts list sturdy stocks The SEBI order against 24 brokerages has led to violent in the market. With these violent swings expected to last for a few more days, analysts suggest what to buy now.
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