The Bombay Stock Exchange benchmark Sensex today rebounded from the day’s low and closed down 223 points on nervous selling by funds as concerns about Dubai’s debt problems rattled markets around the world.
The Sensex, after dipping nearly 600 points during the day, settled lower by 222.92 points at 16,632.01 points as funds remained aggressive sellers in realty, banks and IT segments.
In similar fashion, the wide-based National Stock Exchange’s Nifty touched the day’s low of 4,806.70, ended with a loss of 63.80 points at 4,941.75.
Stocks, currency and bonds also fell as investors shied away from riskier emerging market assets over losses stemming from Dubai World’s attempt to reschedule its USD 59 billion debt.
The rupee and bonds retreated, with the currency joining stocks in posting its biggest drop in more than three months, brokers said, and added the US dollar rebounded to edge over the rupee over Rs 47 was a magic change.
In the 30-share Sensex, 25 closed with heavy losses while five were higher on investment buying. These were Bharti Airtel, Grasim, Hero Honda, Reliance Infra and Tata Steel.
The Sensex heavyweight Reliance Industries dropped by Rs 15.70 to Rs 1,048.90 and second-heaviest Infosys Technologies by Rs 58.55 to Rs 2,328.20. The two carry nearly 23 per cent weightage on the Sensex.
The Dubai government owned Dubai World with USD 59 billion of liabilities has sought a “standstill” agreement from its creditors. The Dubai government’s attempt to reschedule debt from creditors pulled the panic button across global markets.