Sensex crashes nearly 500 points

MUMBAI, Jan 27 (PTI): Five days of sharp losses turned bloody on the sixth day today on the markets, with funds and investors pressing the panic button, pulling down the Sensex by nearly 500 points – biggest single-day fall since August.

After a 188 points downside opening, the Bombay Stock Exchange 30-share barometer continued to fall and ended the day crashing 490.64 points or 2.92 per cent to settle at 16,289.82 –a low seen last time since November 3 last.

A litany of bad news both onshore and offshore lead to the biggest single-day crash of the market since August 17 last.

Rajapaksa wins Lanka polls

COLOMBO, Jan 27 – Sri Lankan President Mahinda Rajapaksa today won a second term in office trouncing united opposition candidate Sarath Fonseka, his one-time army chief in jointly eliminating the LTTE who later parted ways, reports PTI. In dramatic events on a tension-filled day when scores of heavily-armed soldiers surrounded a lake-front luxury hotel in central Colombo, where 59-year-old Fonseka was staying, the defeated candidate sought protection from “a neighbouring country”, apparently India, fearing for his safety.

Government, however, dismissed suggestions of any foul play against Fonseka, who quit as army chief late last year following differences with the President, with both claiming credit for eliminating the Tamil Tigers.

Barbed wire cut on India-Pakistan border

JAMMU, Jan 23: A red alert was sounded all across Jammu and Kashmir Saturday after a long stretch of the barbed wire fence on the India-Pakistan border was found cut. There have been intelligence reports that terrorists were desperate to mount a spectacular attack in the state in the run-up to Republic Day.

A group of infiltrators cut several metres of barbed wire fence along Ranbirsinghpora sector, taking advantage of thick fog in the area, about 30 km west of Jammu Friday night. This was detected today when the fog cleared.

“It’s a very serious breach and this has been done with professional expertise,” a Border Security Force (BSF) official told IANS on condition of anonymity. The possibility of armed infiltrators having made it to this side of the border was not being ruled out by the intelligence agencies.

“We are alive to infiltration from the international border,” Director General of Police Kuldeep Khoda told reporters. “Pakistan is desperate to mount an attack in Jammu and Kashmir, but we have sounded alert and our forces are fully prepared to foil any misadventure of terrorists,” he said.

Airports, television stations, radio stations and headquarters of the forces in the State have been asked to take special care. Intense checks are going on all across the State. VIPs have been asked to restrict their movement and vehicles are not being allowed to be parked at sensitive places. (IANS)

Govt policies responsible for rising food prices

Sushma Ramachandran

Even as food prices continue to rise inexorably at over 16 per cent, the government has finally taken steps to curb the spiralling price inflation that has been hurting all sections of society, especially the poorest of the poor. And Agriculture Minister Sharad Pawar is in the eye of a storm over remarks that milk prices may go up as shortages are being reported by several states.

He has also announced measures to reduce prices of basic food articles like wheat, rice and sugar. He has even assured that prices will begin to climb down in 10 days. The question is why the government took so long to take these measures when it had been clear for the last few weeks that food prices were rising uncontrollably?