Sensex slips below 9K, IT, banking stocks major losers

Sensex slips below 9K, IT, banking stocks major losers

Mumbai: Falling for the fifth day in a row, the benchmark Sensex on Tuesday closed below 9,000 level after more than 20 days with funds intensifying selling after Citigroup announced plans to lay off over 50,000 people, indicating the deep impact of the global financial upheaval.

The BSE bellwether index closed the day at 8,937.20, down by 353.81 points from its last close. Sensex had lost more than 1,500 points in these five days of losing-spree.

The barometer last closed below 9,000 level on 27 October.

National Stock Exchange index Nifty also lost 116.40 points at 2,683.15.

Brokers said the world’s largest lender Citigroup’s plans of massive job cuts mainly dampened trading sentiment. Besides, Japan sliding into recession also weighed against buying support.

Vikram Pandit-led financial services giant yesterday said it would cut more than 52,000 jobs in the coming months.

Marketmen said the investors drew little comfort from the finance minister’s saying the government will take steps to stimulate the economy to offset the impact of the global slowdown.

Sluggish global economic conditions, particularly in the US, from where software companies earn a good chunk of their revenues, continued to cast a shadow on IT stocks whose index ended lower by 4.70%.

Power and banking indices also bore the brunt of selling, and their respective indices closed down by over 4%.

Among IT stocks, Infosys, Satyam, TCS and Wipro were the major losers, while Tata Power, Reliance Infra, Reliance Power, Siemens, NTPC, BHEL and ABB were the power sector shares which closed down sharply.

However, teck sector index suffered the most at 4.96%.