Mumbai: Stocks led by banking and realty sectors plunged to their recent lows on the Bombay Stock Exchange at midsession on 7 March, pulling the benchmark index Sensex down by 846 points.
The Sensex tanked by 845.63 points to 15,696.45 and the NSE index Nifty fell by 245.95 points to 4,675.45 at 1300 hours as most of the heavyweight stocks in banking, realty, metal and refinery sector dip to their recent low levels.
The BSE barometer witnessed its biggest weekly decline since May 2006, as State Bank of India led banks went lower on concerns that profit margins would fall.
The SBI, the nation’s largest by assets, dropped to its lowest since October 23, after Finance Minister Palaniappan Chidambaram yesterday, said banks should consider cutting rates on some home loans. SBI shares fell by Rs 89.15 to Rs 1,765.
Punjab National Bank, another state-run lender, fell to its lowest since October 22. ICICI Bank Ltd, India’s second largest lender by assets, dropped to almost a six-month low.
Mumbai: The stock markets failed to sustain momentum and fell by 552 points to below 16K level in late morning trade on 7 March due to extremely weak global cues amid lingering worries of recession in the US market.
Asian markets were sharply down following a fresh slide in American stocks yesterday as a number of the US mortgage delinquencies and foreclosures continued to rise in the fourth quarter.
The Bombay Stock Exchange benchmark Sensex was down 551.80 points or 3.34% at 15,990.28 at 1030 hours from its previous close of 16,542.08.
Similarly, the National Stock Exchange’s S&P CNX Nifty dropped by 108.30 points or 2.2% to 4,813.10 at 1030 hours from its last close of 4,921.40.
Bank, realty and power stocks came under a fresh selling onslaught resulting in a fall of nearly 4% their respective indices in early trade.