Thaindian News

Mumbai, Sep 22 (IANS) A sell-off in stock markets around the world Thursday affected Indian equities as well with a benchmark index plummeting 704 points - its worst fall in over two years - and broader markets under a firm bearish grip.

US Federal Reserve’s comments that there were significant risks to the economic growth triggered off panic selling in equities across the world.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the red at 16,827.85 points, nose-dived 704 points or 4.13 percent to close at 16,361.15 points compared to the previous close at 17,065.15 points.

The 30-scrip index slumped to an intra-day low of 16,316.03 points. Thursday’s fall has been the worst in over two years for the benchmark.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also fell sharply and closed 209.6 points or 4.08 percent down at 4,923.65 points.

Selling pressure was across the board as all the broader markets as well as sectoral indices closed deep in the red. Realty, metals, oil and gas, capital goods and banking indices of the BSE closed between 4-6 percent.

“Today’s fall has come as market felt Feds $400 billion package may not be sufficient to solve the crisis. Further, the rumours that European insurance company Lloyds pulling out the bank deposits from the European banks also added to the nervousness,” said D.K. Aggarwal, chairman and managing director, SMC Investments and Advisors.

“Along with this, rupee weakening to two-year lows is expected to add up to the inflationary figures putting further pressure on the economy,” he added.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors were net buyers to the tune of $69.67 million.

All 30 stocks on the Sensex ended on the losing side. Prominent losers were Jaiprakash Associates, down 9.33 percent at Rs.67.05; DLF, down 7.16 percent at Rs.197.85; RIL, down 6.16 percent at Rs.786.454; and Bharti Airtel, down 5.22 percent at Rs.372.

All other Asian markets too fell sharply with key indices in various countries losing between 2-5 percent.

Hong Kong’s Hang Seng index closed 4.85 percent down at 17,911.95 points, while the Chinese Shanghai Composite index ended 2.78 percent lower at 2,443.06 points.

The Japanese Nikkei closed 2.07 percent lower at 8,560.26 points.

European bourses too were ruling with similar losses.

Britain’s FTSE was down 4.32 percent at 5,060.13 points, the German DAX was trading 4.21 percent lower at 5,205.27 points.

The French CAC 40 was ruling 4.82 percent down at 2,794.24 points.