Sensex sheds 229 pts on weak cues on global banks | business | Hindustan Times
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Sensex sheds 229 pts on weak cues on global banks

business Updated: Jan 20, 2009 17:34 IST

The Bombay Stock Exchange benchmark Sensex on Tuesday nosedived by nearly 230 points amid a sharp fall in Asian stocks, casting a shadow over hopes placed on Barack Obama, who takes over as the 44th US President on Tuesday.

Marketmen said investor sentiment was dampened by Royal Bank of Scotland's projection of a staggering more than 40 billion loss for 2008 which followed Citibank and Bank of America's whopping losses of $8.3 billion and $1.8 billion respectively for their fourth quarter.

After opening steeply lower, the 30-share BSE barometer moved in tandem with its Asian counterparts before closing down at 9,100.55, a fall of 229.02 points or 2.45 per cent.

The broader Nifty of the NSE also lost 49.60 points or 1.74 per cent to close at 2,796.60.

Marketmen said investors are deeply worried about the balance sheets of global banks and they fear the crisis in the financial sector will only deepen now despite a flurry of bail-out packages by different governments, the UK's rescue package being the latest one.

Brokers said developments at the trio-give out signals that woes of banks are even beyond control of governments as their bottom lines have not improved.

Asian indices ended lower by about 1.5 per cent to 3.0 per cent except China's Shanghai Composite which closed 0.37 per cent higher. Bourses in Asia were hit as the European markets saw heavy sell-off yesterday which reflected in Asia.

European markets on Tuesday opened strong which saw domestic bourses attempting a rally which was not sustained. European indices were trading higher by about 1.0 to 1.5 per cent.

Investors targeted frontline stocks with metal, realty and bank shares bearing the brunt of selling pressure.

Power stocks, however, bucked the trend and registered handsome gains on fairly heavy investment support.