Fresh trouble emanating from a stand-off between France and Germany over buying of bonds by the ECB — with Germany opposing the idea while France supported it — softened up the markets on Thursday. The BSE benchmark Sensex slid 314 points, or 1.9%, to close at 16,462, the lowest in six weeks.
Among the prominent losers were Reliance Industries, which shaved off 4.5% to close at Rs 811, and Jaiprakash Associates which lost 6.5% to end at Rs 63.
“Europe, of course, was the trigger but I don’t think even the problems of 2008 slowdown have been solved,” said Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities. “The way the midcap index has fallen today, it does not seem like a routine correction but more like a portfolio wind-up by the FIIs.”
The 50-scrip Nifty of the National Stock Exchange lost 96 points, or 1.9%, to close at 4,935 points. “The Nifty could go all the way down to 4000 before it starts recovering,” he projected.