Bloodbath at Dalal Street; Sensex tumbles 562 pts

RSTV Bureau

BSE_DOWN ARROWFriday was a day of bloodbath at Dalal Street. Bombay Stock Exchange Sensex crashed by 562.88 point to finally close at 25, 201.90. Nifty too stayed below the  7,700 mark through the day and finally closed at 7,655.05.

In the early trade Sensex fell by over 570 points and hovered around 25,193. During midday, Sensex further slid and fell by over 645 points or a 2.5 per cent down to stand at 25,119. Nifty slumped to 7,639 which is a fall of over 1.71 per cent in early trade. This was the lowest level for both indices in the last 13 months.

A sustained capital outflow by foreign funds and a weak trend on other Asian markets led to the fall. Investors turned cautious ahead of the US job data which also triggered panic selling.

All sectoral indices, led by realty, banks, power and metals were trading in the negative zone with losses of up to 3.75 per cent.

Vedanta again topped the list of the biggest losers. It was down by 4.39 per cent, followed by Tata Steel, Tata Motors, Axis Bank and ICICI Bank.

The European Central Bank indicating that it could expand its stimulus also weighed on the market sentiment, said some brokers. According to them a fear of a poor agricultural output as monsoon deficit widened, triggered selling in the stocks.

Sensex had closed in the green on Thursday afternoon after a three day fall. Sensex ended at a good 311 points up on Thursday.

As per provisional data available, foreign investors sold shares worth Rs 1,573.42 crore on Thursday.

Among other Asian markets, Japan’s Nikkei was trading 1.13 per cent down, while Hong Kong’s Hang Seng shed 0.19 per cent in early trade.

The US Dow Jones Industrial Average, however, ended 0.14 per cent higher in yesterday’s trade.

Not much good news for the rupee too. The currency depreciated from its initial gains to drop by 14 paise to 66.38 against the US currency. It opened at 66.16 per dollar against Thursday’s closing of 66.24 at the Interbank Foreign Exchange (Forex) market.

Globally, the US dollar was higher against other major world currencies in early Asian trade after the European Central Bank gave a sober assessment of the euro zone economy and suggested it may have to step up its already massive stimulus programme.

 

(With inputs from PTI)