Update: Sensex tumbles by 3.28%, Nifty closes below 4,000

Update: Sensex tumbles by 3.28%, Nifty closes below 4,000

Mumbai: Markets suffered further deep setback on Friday with the National Stock Exchange index Nifty closing below 4,000 mark in almost two months and benchmark Sensex shedding a hefty over 440 points on selling sparked by reports of failure of another US firm Washington Mutual.

Marketmen said investor sentiment was battered after report of all deposits, assets and certain liabilities of Washington Mutual, America’s second largest savings and loan institution, going to JPMorgan Chase on regulator’s directive

They said news of Washington Mutual was a further blow to investors as they were already signs that the 700 billion dollar rescue package is likely to get delayed.

The BSE barometer which lost nearly 145 points on Thursday, fell further by 445 points at 13102.18.

The 50-share National Stock Exchange index Nifty too came under heavy selling pressre and closed at 3,985.25 points a level last seen on 16 July.

On BSE, realty stocks were hammered once again amidst continuing concern over upheaval in global financial markets and their sectoral index closed down by 6.33%. Banking counter was also under severe pressure and bankex was lower by 4.27% at close. Metal index was next biggest casualty at 4.76%.