Markets tumble, Sensex loses 506 pts

Markets tumble, Sensex loses 506 pts

Mumbai: Amids a sharp decline in Asian and European bourses, domestic exchanges fell like a pack of cards with benchmark Sensex losing over 500 points to two-month low level on selling by funds even as the much-awaited $700 billion rescue package of US inched closer to final approval.

The BSE barometer closed the day lower by 506.43 points at 12,595.75, a level last seen on 16 July. During the day, the key index touched a low of 12,402.84 points.

The 30-share Sensex had cracked the crucial 13,000-point level in early trade.

The wide-based National Stock Exchange index Nifty also plunged by 135.20 points, or 3.39%. to 3850.05, after dipping to 3,777.30.

Marketmen said even as the investors feared that the US government’s $700 billlion bailout may just fail to meet its objective of tiding over the financial crisis, came the news of two European banks - Belgian Fortis and British Bradford & Bingeley - going the nationalised way.

The all-round selling pressure gained further momentum after reports the US financial crisis spreading in the European markets.