Indian equities crash on global cues, liquidity worries (Lead)October 10th, 2008 - 1:01 pm ICT by IANS
Mumbai, Oct 10 (IANS) Seemingly dissatisfied with the interventions across the globe by governments and central banks to cushion the financial crisis, Indian equities crashed Friday, pulling a key index down to its lowest levels in more than two years.The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was ruling at 10,726.01 points, an hour after the opening bell, with a loss of 602.35 points, or 5.32 percent, over the previous close.
The index had opened at 10,632.27, but within a couple of minutes, it crashed to 10,239.76 points. The index then staged a minor recovery, amid some volatile trading, data with the exchange showed.
All the 30 shares that go into the Sensex basket were in the red.
Consumer durables stocks took a major beating with the sector-specific index for the industry down 7.47 percent, while technology index was next with a loss of 6.32 percent.
Among the Sensex scrips, ICICI Bank led the losers, down 13.80 percent, followed by Reliance Communications (-10.41 percent), Jaiprakash Associates (-10.17 percent), Tata Steel (-8.72 percent) and Satyam Computer (-8.07 percent).
The market seems to have ignored the resolution adopted by the union cabinet late Wednesday that said the Indian economy was robust and that the liquidity problem that appears to have surfaced would be addressed adequately.
A day after, leading industry lobbies appealed to the policymakers to inject Rs.1,000 billion ($22 billion) into the financial system to ease the liquidity problem and help tide over the cash crunch.