Delhi MCD Election Results 2017

Source: media reports

Sensex nosedives 523 points on fears of recession in US

Sensex nosedives 523 points on fears of recession in US
PTI
Comment E-mail Print Share
First Published: Wed, Feb 06 2008. 11 52 PM IST
Updated: Wed, Feb 06 2008. 11 52 PM IST
Closing
Mumbai: Sensex today plummeted by 523 points, its biggest loss in the last two weeks, with software and metal stocks falling on reports of contraction in US service industry.
The 30-share BSE barometer, which remained flat in the previous day’s trading, dropped 523.67 points to 18,0139.49, its biggest drop since 22 January when 28 of the index-related 30 scrips ended with heavy losses. Only two in positive mode were Reliance Energy and Reliance Communication. The index on 22 January saw an erosion of more than 870 points.
The key-index touched the day’s high of 18,274.15 and a low of 17,936.01 points in the volatile trading activity.
The wide-based Nifty index also plunged by 161.35 points at 5,322.55, after touching a high of 5,470.40 and a low of 5,257.05 points.
IT stocks bore the brunt of today’s sharp downfall. Marketmen said IT stock suffered on reports of contraction in US service industry as most of these companies earn more than 50% of their revenues from American markets. The sector index lost 226 points at 3,813.82 followed by metal sector index which was down by 604.35 points at 16,189.46.
With US service industry now not in really good shape, many feel the world’s largest economy may be in for even worse condition than previously feared.
Brokers said foreign funds were seen selling heavily in a number of blue-chip stocks.
They said if the volatility in the market remained like this, the market might see more corrections in the coming time.
Update at Noon
Mumbai: Stock markets continued to reel under heavy selling pressure in early afternoon trade with the benchmark Sensex trading with a loss of 624 points as fears of a possible economic recession in the US sweeped global markets.
After plunging over 727 points in early morning trade, the 30-share index recovered about 100 points from the day’s low, but was still down by over 3%, 623.90 points, at 18,039.26 at 1200 hours.
Foreign funds were seen selling heavily in a number of blue-chip stocks, brokers said.
The broad-based Nifty was down by 188.35 points at 5,295.55 as most of the index stocks fell sharply. It had opened the day lower at 5,257.05 points.
Marketmen said selling pressure gathered momentum this morning following reports of a steep fall in global stock markets influenced by a surprise contraction in the giant US service sector, which triggered concerns that the world’s largest economy may be in even worse condition than previously feared.
They said if the volatility in the market remained like this, the market might see more corrections in the coming time.
Morning
Mumbai: Sensex crashed by more than 727 points in early trade today on all-round selling by funds and retail investors triggered by weak global cues.
The BSE 30-share index which remained flat yesterday, fell by 727.15 points to 17,936.01 in the first five minutes of trade as all the heavy-weight stocks like Reliance Industries, Infosys and Tata Steel declined due to heavy selling by funds at existing lower levels.
The wide-based Nifty, also tumbled by 226.85 points to 5,257.05.
Marketmen said trading sentiment turned bearish following a steep fall in the global stock markets.
Hong Kong’s benchmark index Hang Seng moved down by over 5% in early trade today, pulled down by a sharp fall on Wall Street yesterday, they added.
Comment E-mail Print Share
First Published: Wed, Feb 06 2008. 11 52 PM IST
More Topics: Stocks | Shares | Opening | Sensex | Nifty |