Markets turn cautious, Sensex sheds 398.18 pts
The stock markets turned cautious after a smart recovery in the last two days with the benchmark Sensex plunging by 398.18 points.business Updated: Oct 15, 2008 13:30 IST
The stock markets turned cautious on wednesday after a smart recovery in the last two days with the benchmark Sensex plunging by 398.18 points at 1130 hrs ahead of second quarter corporate earnings amid weak global cues.
Despite a slew of measures initiated by the government and the market regulators to support bourses, brokers said investors adopted cautious approach on fears that Q2 corporate results would be adversely affected due to a slowdown in global economies.
The Bombay Stock Exchange 30-share barometer was quoted at 11,085.22 at 1130 hrs, a net loss of 398.18, from its previous close.
The broader 50-share Nifty of the National Stock Exchange also dropped by 103.95 points to 3,414.70 at 1130 hrs from its last close.
The brokers said investors seem more concerned about a likely global recession even as the policymakers around the world took bold steps to minimise adverse impact on the international financial system.
A frontline stock, L&T, is scheduled to announced its results during the day.
Asian indices were trading down by about 1.3 per cent to 2.5 per cent this morning.
The markets yesterday came under pressure after a strong initial rally and pared about two-third of its gains due to profit-taking by investors in the second half of the session.