Thaindian News

Mumbai, March 15 (IANS) A benchmark index for Indian equities markets slumped nearly one and a half percent Tuesday on radiation worries following three explosions at nuclear reactors after the devastating earthquake in Japan and a possible rate hike by the Indian central bank to curb inflationary pressures.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), opened deep in the red at 18,113.79 points and slumped to a low of 17,920.55 points within a few minutes of trading.

The benchmark Sensex ended the day at 18,167.64 points, down 1.47 percent or 271.84 points from the previous close of 18,439.48 points.

Taking cues from weak global markets, Indian stock markets witnessed nervous selling pressure and slumped below psychologically important 18,000-points level in early trading. The Sensex touched a high of 18,326.33 points and the low of 17,920.55 points in the intra-day trading.

At the National Stock Exchange (NSE), the situation was no different. The S&P; CNX Nifty ended 1.48 percent or 81.85 points down at 5,449.65 points.

All the broader markets as well as sectoral indices closed deep in the red. Of the broader markets, the BSE midcap index fell 1.43 percent at 6,467.86 points and the BSE smallcap index slumped 1.63 percent at 7,791.33 points.

There was a heavy selling pressure in realty, auto, metal and power scrips. The BSE realty index tanked 3.14 percent. The BSE auto, metal and power indices also fell over two percent.

Major losers on the Sensex were: Jaiprakash Associates, down 3.80 percent at Rs.80.95; Maruti Suzuki, down 3.55 percent at Rs.1,214.50; ONGC, down 3.42 percent at Rs.271.30; Sterlite Inds, down 3.25 percent at Rs.157.65; and DLF, down 3.15 percent at Rs.221.10.

Only two of the 30 Sensex scrips closed in the positive terrain. RIL rose 1.83 percent at Rs.1,036.30, and Reliance Comm closed 0.45 percent higher at Rs.100.95.

With the easing of crude oil prices, Monday had seen the Indian stock markets discount the events in Japan and the Sensex, which opened in the red at 18,167.10 points, ended the day at 18,439.48 points, up 1.46 percent or 265.39 points over the previous close.

Radiation levels have spiked Tuesday after another blast at a reactor in a quake-damaged nuclear power plant in northeastern Japan. Friday’s magnitude-9 earthquake led to the failure of the cooling systems of three reactors at Fukushima nuclear plant.

The market sentiments were also dampened by worries over a possible rate hike by India’s central bank, following a marginal increase in the domestic annual inflation rate, which rose to 8.31 percent in February from 8.23 percent for the month before.

Markets tumbled across the world, with Japan’s Nikkei posting the biggest two-day loss in nearly 25 years. Nikkei average tanked 10.55 percent to close at 8,605.15 points Tuesday after plunging 6.18 percent in the previous day, posting sharpest two-day loss since 1987.

Other Asian markets also closed deep in the red, with the Hong Kong’s Hang Seng shedding nearly three percent and China’s Shanghai Composite losing 1.41 percent.

European markets were also in the tremendous selling pressure. Around mid-day, the French CAC 40 was trading 3.40 percent down, the German DAX was down 4.35 percent and Britain’s FTSE 100 was trading 2.14 percent lower.