Update: Sensex falls below 11,000 level on weak global markets

Update: Sensex falls below 11,000 level on weak global markets

Mumbai: The benchmark Sensex on Wednesday breached the 11,000 level for the first time since August 2006, with losing little over 730 points in late morning trade following weak global markets on deepening financial crisis.

The BSE barometer was trading at 10,965.01 points at 10:45am, a loss of 730.23 points, or nearly 6%, over the previous close.

The wide-based National Stock Exchange’s Nifty dipped by 213.90 points, or 5.5%, at 3,392.70 points in late morning trade.

Marketmen said melting global markets and depreciating Indian rupee, which fell to nearly six-year low of 48.28 in early trade on Wednesday, dampened the trading sentiments here.

Sustained capital outflows by foreign funds weighed on the stock markets, they said, adding that steps by financial sector regulators SEBI and RBI failed to bolster investors’ sentiments.

Asian stock markets dipped nearly 5% in early trade, with Tokyo’s Nikkei index dropping below the key 10,000 points level for the first time in more than four years.

The US Dow Jones Industries lost more than 500 points to 9,447.11, its lowest close in five years.

The BSE benchmark Sensex plunged by over 680 points in early trade.

The NSE index Nifty had tumbled by 200.80 points to 3,405.80 with all the heavy-weight stocks trading in the negative zone.

Marketmen said apart from sharp losses in the global stock markets, depreciating Indian rupee against the US dollar too dampened the trading sentiments here. Indian rupee fell by 37 paise to Rs48.28 against the dollar in early trade on the Forex market today.

Stocks which dragged the BSE barometer down are Larsen and Toubro, BHEL, Tata Steel, Reliance Industries, Reliance Infra, Rcom, ICICI Bank, HDFC Bank, State Bank of India, Bharti Airtel, Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, Grasim Industries, ACC and HDFC Ltd.