Slowdown fears bring Sensex down again

Domestic shares slid on Wednesday to their lowest in a week as worries about a slowdown in the global economy continued to haunt stock markets across the globe. Opening the day on a weak note, sentiment dipped after reports of an earthquake in Indonesia. Most Asian indices ended the day in the red.

The benchmark Sensex of the Bombay Stock Exchange lost 458.06 points, or 2.53 per cent, to end at 17,617.60, its lowest close since last Wednesday. Of the 30 stocks in the index, 25 recorded losses. The 50-share Nifty of the National Stock Exchange lost 126.35 points, or 2.39 per cent, to close at 5,154.45 points. The market breadth was strongly negative on the Nifty as well, with 38 scrips ending lower.

"Global jitters following the Credit Suisse statement that profitability will be hit after the sub-prime write-downs triggered the fall. Foreign funds are also selling on the Nifty to hedge their risks. However, we expect a pre-budget rally soon," said Dev Kapadia, chief dealer of Lalkar Securities.

According to provisional data available on the NSE website, FIIs were net sellers of Indian shares worth Rs 266.44 crore on Wednesday.