Sensex slumps 4.56 % on global turmoil | business | Hindustan Times
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Sensex slumps 4.56 % on global turmoil

business Updated: Sep 24, 2011 15:37 IST

A benchmark index for equities slumped almost 5 % this week on turmoil in the global bourses after the US Federal Reserve said the world economy could slide into another recession.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) tumbled 4.56 % or 771.77 points in the weekly trade. The 30-scrip index slumped 1.22 % to close at 16,162.06 points on Friday, the last trading day of the week.

This is the first weekly loss in the benchmark Sensex in the last four weeks.

The markets started the week on a negative note but rebounded smartly on the second trading day of the week.

However, the Sensex crashed 704 points or 4.13 % on Thursday, its worst fall in two-years, on global rout after the US Federal Reserve painted a gloomy outlook for the United States and the world economy.

The sentiments remained weak Friday as well. Markets across the world continued their slide on the last trading day of the week, with India's benchmark Sensex closing 1.22 % down.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty also fell almost five % in the weekly trade. The Nifty closed 1.14 % down at 4,867.75 points Friday, after a 4.08 % loss the previous day.

“The bias is downward with Nifty support at 4,700 points, and if it breaks then we should be even prepared to see 4,300 points,” Kishor P. Ostwal, Chairman and Managing Director of a capital market research firm CNI Research Ltd.

“On upper side 5,170 points is resistance, we can see Nifty touching 5,500 only if it crosses 5,170,” Ostwal said.

Major Sensex losers Friday were: Tata Motors, down 4.81 % at Rs.147.40; HDFC Bank, down 3.1 % at Rs.457.65; L&T, down 2.7 % at Rs.1,452.25 and Hero MotoCorp, down 2.45 % at Rs.2,037.65.

The gainers were Cipla, up 2.09 % at Rs.283.85; SBI, up 1.03 % at Rs.1,955.50; Bharti Airtel, up 0.77 % at Rs.374.85 and Sun Pharma, up 0.59 % at Rs.471.10.

World markets slumped on panic selling this week.

Among the other Asian markets, Hong Kong's Hang Seng index closed 1.36 % down at 17,668.83 points Friday after a drop of almost five % the previous day. Chinese Shanghai Composite index ended 0.41 % lower at 2,433.16 points Friday after slumping almost three % Thursday.

The Japanese Nikkei closed 2.07 % lower at 8,560.26 points Thursday. The Japanese markets were closed Friday on account of a holiday.

European as well as American markets slumped Wednesday and Thursday. The US markets registered biggest weekly loss since 2008. The Dow Jones Industrial Average slumped 6.4 % and the S&P 500 index lost 6.5 % in the weekly trade.

However, the markets recovered Friday with most of them closing in the positive territory.

Britain's FTSE100 index closed 0.50 % higher at 5,066.81 points, the German DAX rose 0.63 % to 5,196.56 points and the French CAC 40 advanced 1.02 % higher at 2,810.11 points Friday.

The Dow Jones Industrial Average of United States closed 0.35 % higher at 10,771.50 points and S&P 500 index rebounded 0.61 % to close at 1,136.43 points on Friday.