Sensex tanks 300 pts on US auto bailout failure

Sensex tanks 300 pts on US auto bailout failure

Mumbai: The benchmark Sensex plunged by over 363 points in early trade on Friday on heavy selling by funds in heavyweight stocks following overnight sharp fall in the US stock markets on the worries of an auto industry bailout package, which fell through in the Senate.

The 30-share barometer, which shed 9.44 points in Thursday’s choppy trade, tumbled by 363.57 points, or 3.77% at 9,281.89 points in the first five minutes of trading, with all the sectoral indices including auto, metals and realty index registering losses up to 4.17%.

The wide-based Nifty of the National Stock Exchange tanked 107.60 points, or 3.68 %, to 2,812.55 points.

All 30 shares from the Sensex pack registered losses during the initial 15 minutes of trading.

Marketmen said Indian stocks fell due to overnight heavy losses in the US markets, with the Dow Jones index plunging 2.24% after the US Senate failed to reach consensus on bailing out auto companies.

Further, speculations that domestic industrial output data for October month was expected to be weak also had a negative impact on the trading sentiments, they said.

Among Asian bourses, Hong Kong’s Hang Seng dipping by 6.90%, while Japan’s Nikkei declined by 6.54% in early trade in line with global markets.