New Delhi: Markets fell to its lowest since November 2005 on Thursday after witnessing significant selling pressure despite inflation touching its seven-year low. The negative opening of the European markets also dragged the Bombay Stock Exchange benchmark Sensex by 2.94%.
Markets had regained some losses in the afternoon session but low inflation and RBI repo cuts were not sufficient to keep key indices from tumbling as economic worries continued to persist already hesitant investors.
Markets opened positive on overnight Wall Street rally and firm Asian markets after China assured of more fiscal spending to revive the economy but gains were short lived as index dipped to red again. The 30-share BSE Sensex closed at its record low in three years at 8,197.92 or 248.57 points down and 50-share NSE Nifty was down 68.50 points at 2,576.70.
Worldwide financial crisis also had an impact on the domestic bourses as Banking stocks were battered significantly by 4.5%, followed by heavy stocks like oil and gas by 4% and power by 3.4%.
The overall market breadth was negative except some buying in the consumer durable segment that surged by 0.52%.
ICIC Bank plunged for the second day to its 4-year low on uncertainty about losses in the bank’s Russian investments. ICIC shares fell by 5.17% to Rs269.60, other bank stocks that incurred losses were HDFC by 4.54% to Rs800.70 and State Bank of India by 2.40% to Rs934.55.
Shares of Ranbaxy dipped by 9% to top the decliners on the BSE index amid news that the Australian health regulator has undertaken a review of their just after a week of US FDA accusing the pharma of data falsification. Their shares fell by 9.27% to Rs144.40.
India’s largest listed firm Reliance Industries was also among the top losers, dipping by 5% to Rs269.60.
Among the international markets Japan’s Nikkei gained 2% hoping for fresh stimulus from China but Hang Seng dipped by 1% on disappointment of no concrete stimulus by the Chinese authorities.