New Delhi: Markets reeled under pressure through the day on Thursday, 15 January, as the Bombay Stock Exchange benchmark Sensex ended lower by 3.45% on selling off by foreign funds and weak Asian markets.
Sensex opened trade below the crucial 9,000 mark dragged down by banking and IT sectors. Market did manage to see a small recovery but around midsession but could not sustain as all segments traded in red and European markets turned negative.
The 30-share BSE index ended 323.75 down at 9,046.74 and broad based 50-share NSE Nifty ended lower by 98.60 points at 2736.70.
Banking indices tanked the maximum as investors worried about the deepening banking crises in the United States and world over - stocks were down by 5.69%. Metal, Realty and IT were other segments that witnessed significant selling pressure.
Filing for bankruptcy by Canada-based telephone equipment maker, Nortel Networks Corp’s in the US and Canada also resulted in negative sentiment for IT companies. Infosys shares dipped by 4.05% to Rs1,252.05 and Wipro by 3.55% to Rs235.30.
Shadowed by fraud scandal shares of Satyam Computers tumbled by 31% as news came in that government is not considering any bailout plan for India’s No.4 software company.
Leading the decline on the BSE index was Jaiprakash Associates by 8.03% to Rs64.70, followed by Tata Steel by 7.33% to Rs195.50, ICICI Bank by 7.31% to Rs408.85, Sterlite Industries by 7.10% to Rs253.70, Reliance Communication by 6.01% to Rs174.25 and HDFC Bank by 5.41% to Rs924.50.
Asian markets hit a six-week low on fears of US banking crisis. Japan’s index Nikkei fell by 4.9% reaching a one-month low and Hong Kong’s Hang Seng dropped to a 7-week low of 3.3%.