Thaindian News

Mumbai, May 19 (IANS) A benchmark index for Indian equities plunged more than 459 points in afternoon trade, dragged by selling in the ICICI Bank stock, and in tandem with falling world bourses.
Negative global cues also weighed heavily on Indian markets, after Germany announced tighter financial regulations, banning short selling government bonds and financial institutions, which fanned concern that global economic recovery may be derailed.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,802.39 points, was ruling at 16,415.9 points, 459.86 points or 2.72 percent down from its previous close at 16,875.76 points.

ICICI Bank’s scrip was ruling 4.71 percent lower at Rs.847.50, as traders reacted negatively to its proposed takeover of Bank of Rajasthan.

Analysts believe ICICI bank is paying a high price for Bank of Rajasthan, at Rs.188.42 per share, a premium of 89 percent to the smaller bank’s closing price on Tuesday. Bank of Rajasthan’s stock was, however, up 20 percent at Rs.119.40.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling at 4,921 points, down 2.87 percent from its previous close.

Broader markets also came under selling pressure with the BSE midcap index ruling 2.08 percent lower and the BSE smallcap index 1.9 percent down.

Asian peers closed in the red.

Hong Kong’s Hang Seng shut shop 1.83 percent lower at 19,578.98 points, while the Chinese Shanghai Composite index closed 0.27 percent lower at 2,587.81 points.

The Japanese Nikkei ended 0.54 percent down at 10,186.84 points. The South Korean Kospi closed 0.8 percent lower at 1,630.08 points.

European traders too stepped up selling.

Britain’s key index FTSE 100 was ruling 2.7 percent lower at 5,163.92 points.

The French CAC 40 too was trading 3.42 percent down at 3,493.68 points and the German DAX was at 5,980.18 points, down 2.85 percent.