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Sensex tanks on global economic worries

July 8, 2009

Selling pressure pulled the BSE Sensex below 14,000 on Wednesday as concerns over global economic recovery spooked financial markets all around.

Trade was volatile and the 30-share sensitive index touched an intra-day low of 13,701 before closing 401 points lower at 13,769. The fifty-share Nifty ended 2.93 percent down at 4,078.

The fall in the benchmark was led by L&T, ICICI Bank, Reliance Industries and HDFC Bank.

MARKETS SOUTHASIA STOCKSOn the sectoral front, the BSE Realty Index dropped 8.47 percent, followed by the Capital Goods Index which ended 5.05 percent lower. All other indices ended in the red.

On the global front, Asian and European markets felt the selling heat as investors pulled funds out of bets on the global economic recovery.

Doubts about the strength of the global economy saw oil prices falling more that a dollar.
Do you think the Sensex fall is a sign of a downtrend setting in, or is it a correction that will see the benchmark scaling new heights?

Comments

Sensex’s and global indexes falling together today may be just coincidental.Bourses are clearly under pressure.Sensex has lost 1,144 points(-7.6%)since b-day.FIIs are on a withdrawal spree.Investors should now try to find out the bottom,and reenter at safe levels.

Monsoons are again playing truant over grain bowl states.The spectre of drought has reappeared.Markets are hoping for cheerful news from Infosys on friday but if there were disappointment in store,sensex could slide faster.

Call it correction or adverse sentiment or global worries,sensex is clearly heading towards a fall.

Posted by A.Kapoor | Report as abusive
 

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