Markets tumble, Sensex loses 506 pts to 2-month low level

Tuesday, September 30, 2008 at 5:09 am

Amids a sharp decline in Asian and European bourses, domestic exchanges fell like a pack of cards with benchmark Sensex losing over 500 points to two-month low level on selling by funds even as the much-awaited 700 billion dollar rescue package of US inched closer to final approval.

The BSE barometer closed the day lower by 506.43 points at 12,595.75, a level last seen on July 16. During the day, the key index touched a low of 12,402.84 points. The 30-share Sensex had cracked the crucial 13,000-point level in early trade.

The wide-based National Stock Exchange index Nifty also plunged by 135.20 points, or 3.39 per cent. to 3850.05, after dipping to 3,777.30. Marketmen said even as the investors feared that the US government’s 700 billion-dollar bailout may just fail to meet its objective of tiding over the financial crisis, came the news of two European banks– Belgian Fortis and British Bradford & Bingeley– going the nationalised way.

The all-round selling pressure gained further momentum after reports the US financial crisis spreading in the European markets. Banking index suffere hefty losses of 395.44 points at 6175.10, after segment major ICICI Bank dropped a whopping 12.11 per cent at Rs 493.30, State Bank of India by 2.04 per cent at Rs 1405, Karnatka Bank by 9 per cent at Rs 120.35, Oriental Bank by 7.30 per cent at Rs 148 and HDFC Bank by 3.71 per cent at Rs 1199.50.

Realty sector, another interest-sensitive counter, also suffered a heavy loss of 189.11 points at 3407.87. Consumer durable index fell by 172.96 points at 2872.39, IT sector index by 177.02 points at 3057.92, power index by 122.63 points at 2225.08, teck index by 134.54 points at 2490.08, capital goods index by 524.59 points at 10,270.60, metal index by 357.86 points at 9144.23.

With the selling pressure spreading over a wide-front, the small-cap index fell 308.75 points at 5553.03 and mid-cap index by 211.49 points at 4729.33.

(PTI)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Markets tumble, Sensex loses 506 pts to 2-month low level

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