Weak global cues drag Sensex to below 14K level
Markets on Monday partly recovered the massive early losses of over 728 points with the benchmark Sensex ending the day lower by nearly 470 points to close below 14,000 level.business Updated: Sep 15, 2008 17:44 IST
Markets on Monday partly recovered the massive early losses of over 728 points with the benchmark Sensex ending the day lower by nearly 470 points to close below 14,000 level.
The Bombay Stock Exchange barometer, which had lost nearly 945 points in the past four trading sessions, dropped by another 469.54 points, or 3.35 per cent, to close at 13,531.27 points.
On frantic selling in early trade, the 30-share index tumbled to 13,150.81 points, the days lowest level.
The wide-based National Stock Exchange index Nifty also lost 155.55 points, or 3.68 per cent, at 4,072.90, after dipping below 4,000 points level at 3,955.40 and touching a high of 4,237.25 points.
Marketmen said investors resorted to panic selling on reports that US investment bank Lehman Brothers, which has been reeling under mortgage losses, is filing for bankruptcy. This has strengthened the feeling the global financial crisis is far from over, they added. Bank of America's plans to buy out Merrill Lynch also weighed against the market sentiment, they further said.
The Indian rupee breaching the 46 mark during intra-day today for the first time in two years also impacted adversely the market sentiments, brokers said. Rupee's weakness raised concerns of more capital outflows as some foreign funds remained active in reducing their portfolios.
On across-the-board selling, all the sectoral indices on BSE closed in the red. Realty index was the biggest loser at 7.65 per cent, followed by IT index at 5.51 per cent. Teck, metal and power indices which closed in the range of above of four per cent were the other major losers.
Among the elite Sensex club, Reliance Infrastructure tumbled by 9.72 per cent to emerge as the biggest loser. IT major Satyam was a close second at 9.45 per cent.