(Fear Factor Responsible)
Mumbai's main Sensex stock index fell 9.8% within minutes, triggering an automatic one-hour halt in trading. It recovered to close 4.97% down.
The rival National Stock Exchange closed 5.9% down.
Finance Minister P Chidambaram urged Indian investors to "remain calm" and ignore the turmoil in Western markets.
"There's no reason at all to allow the worries of the Western world to overwhelm us," he said. (PC Chidambaram)
He said the Indian economy was expected to grow at 9% this year and 8.5% next year.
Fears of a global recession have triggered falls in share prices on markets worldwide
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Concern is growing that US plans for a $145bn (£76bn) package of tax cuts to encourage spending might not be enough be revive the economy.
The US is a major market for Indian exports and outsourcing contracts.
'Time to buy'
Tuesday's losses in Indian shares came after a fall of 7.4% on Monday.
It's mayhem, there is blood on the streets
Surjit BhallaOxus Research and Investments
Indian investors despair
Q&A: Stock market falls
Bear market may be looming
The Sensex initially fell 9.5% on Tuesday morning, causing an automatic one-hour halt in trading.
It recovered briefly and was at one point down no more than 3%. But at the end of trading, it had fallen further to close at 4.97%.
Despite assurances from the finance minister that enough liquidity would be provided to brokers, there were scenes of panic and confusion in Mumbai, with many investors expressing shock at the dramatic slide in prices.
"It's mayhem, there is blood on the streets," Surjit Bhalla, the head of Oxus Research and Investments told the CNN-IBN news channel.
The share slide took many in Mumbai by surprise
But he said he felt fears of a recession in the US were "overdone" and the steep falls had created new opportunities for investors.
"There is a lot of value now in the market. I don't know when the last time was that we saw such value in the market," he said.
Ali Asgar, an Indian businessman and investor in petrol, said he believed the economy would stay strong despite the stock market falls.
"This is also the time to buy more shares which I will do as soon as the market re-opens," he said.
SITUATION WORLDWIDE
Shares in Karachi's benchmark KSE index closed 0.65% down.
Asian tumble Many analysts are predicting indexes worldwide could fall further in coming weeks.
Earlier, Asian markets tumbled with Japan's Nikkei index closing down 5.7%, taking its decline this year to 18%.
In China, the main Shanghai Composite Index closed down 7.2% at a five-month low, having lost 17% in the past six days of trading.
Trading was also suspended briefly in South Korea, where the market dropped more than 6%, while Hong Kong's Hang Seng index lost more than 8%.
First of all, let me make it very clear that I am greatly indebted to you all for continuing to consider me as part of your scheme of things for headlines today.
But there are some issues that need to be addressed for me to be effective, without which my presence will only be meaningless. I do join a job for money, but money no longer remains a motivating factor after sometime.
Of course, below is my wishlist for which I am prepared to pay a price. Just in case someone insinuates that you are being soft on me.
I am ready to remain on probation for two years beginning today (as compared to six months) which will allow you the flexibility to remove me as and when you want (with only 15-day notice). Also, I will lose out on many other benefits, including leaves, which is ok as long as I am not just adding to numbers.
I am ready not to request for any salary increase for next two years (except some increase on my official phone calls)
Now, the first request is that I will need to have total control over ticker operations and people working alongside me on ticker (for 24-hours). Partial control is meaningless. Having spent three months on most testing of HT operations, I do believe that I can really do a very decent job on ticker with total control. Of course, I will be listening to shift-supers and reporters, but the final call will be mine. That is not to undermine anybody’s authority – and I will be attentive and respectful to what shift-super says -- but to ensure that things are done the way they ought to be on ticker.
Second, I would like to have a role in preparing TV Today’s trainees for ticker operations. It is important as I do not want a situation where the last batch leaves the ticker and the new one joins without adequate understanding of how the job is to be done. I want them to be as prepared as the present batch. This will leave you with adequate reserves to man most sensitive of positions.
Third, I would like to remain on morning shift. There are two reasons for it.
a) Morning sets the tone for the rest of the day. More so at ticker. I am sure you would have observed that in last few days in my absence, unless that long list of Bihar Flood Relief contributors took the attention off the orange band.
b) Personal reason. After being in this job, I have realized that my constitution (due to a previous operation) and eye-sight does not allow me to be on evening shift. I get tired, fatigued and sleepy if I work in the evening. I did not know of this before I joined HT.
Now some people could object to it and to take care of that objection, I am ready to take a salary cut.
Trust me. In three months, I very well know what is best for ticker and you would like a professional to take the burden off you.
It is quite likely that you may not agree with some of my suggestions. So one option here is that you pack me off on leave-without-pay for a month or two.
If things work out well without me, kick me out. I will be too happy for you and HT.
But if they do not, you will still have the option of calling me back.
Believe me, this arrangement will see me losing a very substantial amount, and possibly a job considering these are times of recession, but it will be worth experimenting with if my wish list is not acceptable as of now.
Sorry, could not call you yesterday night. Was grappling with cough and cold for last three days.
As per my talk with Shantanu, I will be in office today. Then, whenever you have time, we can discuss this.
Regards
Atul Sondhi
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