Stocks continued their downslide with the Bombay Stock Exchange benchmark Sensex on Friday falling by 255 points during early trade following weak global cues amid strong indications that the US economy is heading towards recession.
Asian indices the Hang Seng, Shanghai Composite, Nikkei, Taiwan and Strait Times were down in a range of 0.18 to 2.0 per cent during morning trade.
The Dow Jones Industrial Average yesterday tumbled by 306.95 points and the Nasdaq Composite Index by 47.69 points.
The BSE barometer opened weak at 19,579.61 and later moved downwards to 19,445.71 at 10.30 am, a loss of 255.11 points from previous close of 19,700.82.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) fell further by 76.60 points to 5,836.30 at 10.30 am from previous close of 5,913.20.
Foreign Institutional Investors (FIIs), which have suffered heavy US mortgage-related losses, were believed to be booking profits in Indian bourses, market players said.
News that Prime Minister's Economic Advisory Council has scaled down its growth projection for 2007-08 to 8.9 per cent from 9 per cent earlier on account of slow expansion in manufacturing and energy generation also had adverse impact on the market sentiment.
FIIs were net sellers to the tune of Rs 2,267.40 crore on January 16, according provisional data.