A sharp fall in world stock markets amid the rapidly deteriorating global economic outlook, coupled with persistent selling pressure from foreign funds, pulled down the BSE benchmark Sensex by 217 points in early trade on Friday.
IT, tech, capital goods, consumer durables, metal and power stocks were under sharp selling pressure and were primarily responsible for the Sensex’s fall.
Tata Motors, Reliance Industries, Infosys, Wipro, ICICI Bank, State Bank of India, Hindalco, Sterlite Industries, Tata Steel, Jindal Steel & Power and Cipla hit 52—week lows in intra—day trade today.
The Bombay Stock Exchange benchmark Sensex resumed lower at 16,237.78 and dropped further to 16,118.42 before quoting at 16,252.37 at 1015 hours, translating into a net loss of 217.42 points, or 1.32 per cent, from its last close.
The National Stock Exchange’s 50—share Nifty index also moved down by 53.70 points, or 1.09 per cent, to 4,890.45 at 1015 hours.
Foreign institutional investors (FIIs) sold shares worth Rs 488.67 crore yesterday, as per provisional data from the stock exchanges.
Meanwhile, Asian stocks slumped in early trade as the deteriorating global economic outlook scared investors away from risky assets. The key benchmark indices in China, South Korea, Indonesia, Hong Kong, Singapore, Japan and Taiwan fell by between 1.2 per cent and 4.48 per cent.
US stocks tumbled yesterday amid growing fears of a global recession, as investors confronted a grim mix of economic data and fresh concerns about Europe’s banks.
The Dow Jones Industrial Average closed 3.68 per cent yesterday. The Standard & Poor’s 500—stock index dropped 4.46 per cent, while the Nasdaq Composite lost 5.22 per cent.
