Sensex down by 101 pts, auto stocks hammered
The BSE benchmark Sensex recovered most of its early losses but still closed the day lower by over 100 points amid a plunge in global markets.business Updated: Dec 02, 2008 16:46 IST
The Bombay Stock Exchange benchmark Sensex on Tuesday recovered most of its early losses but still closed the day lower by over 100 points amid a plunge in global markets following a US panel officially acknowledging that the world's biggest economy is in recession.
After dropping hefty 325 points in early trade, which was attributed to heavy losses over night in the US markets, the BSE barometer regained losses to a great extent before settling the day down by 100.63 points at 8739.24.
Marketmen said trading sentiment has taken a severe jolt after it became official that the US, the world's largest economy is in recession.
A panel of economists of US National Bureau of Economic Research has noted that the nation entered into recession in December last year after 73 months of economic expansion since November 2001. The committee's word is regarded as final on the question if America has entered into recession.
National Stock Exchange index Nifty also dropped 25.10 points at 2657.80.
Auto stocks were battered again with Tata Motors, Maruti Suzuki and Mahindra and Mahindra reporting sharp drops in sale in November. The sector also suffered a blow as most of the world's leading auto companies showed concerns to falling sales. Auto sector index closed the day lower by 3.04 per cent, the biggest loss among all sectoral indices on Tuesday.
Bourses across the globe also tumbled with US's slipping into recession becoming official.
While the Mahindra & Mahindra was the biggest loser at 8.21 per cent, Maruti Suzuki, country's largest car maker, was the next biggest loser at 5.24 per cent.