As expected and mirroring the world markets, the Indian stock markets took a beating on Tuesday following the rejection of the $700 billion financial bailout plan by the US House of Representatives.
In the few minutes of trade,BSE's 30-share sensitive index was down 412.70 points or 3.30 per cent at 12,177.05. It sank to a low of 12,153.55.
National Stock Exchange’s broader Nifty was 3792.45, down 57.6 points or 1.50 per cent from Monday’s close. The 50-share index had fallen to 3715.05.
The declines numbered 762 against 101 advances and 9 stocks remained unchanged.
Sensex losers were led by Satyam Computer (-4.8%), followed by Jaiprakash Associates (-4.78%), Tata Power (-4.59%), Reliance Communications (-3.95%), among others.
There were only three gainers in the index—ONGC (1.15%), Mahindra & Mahindra (0.93%), and State Bank of India (0.36%).
The rejection of the US plan has heightened concerns that more banks will fail and global credit-losses will widen, leading to a deflationary situation. Overnight in the US, the S&P 500 index tumbled 106.59 points, or 8.8 per cent, to 1,106.42—the biggest slump since the crash of 1987. The Dow Jones slid 7 per cent to 10,365.45. The Nasdaq Composite Index declined 199.61, or 9.1 percent, to 1,983.73, its steepest plunge since April 2000.
In the Asia-Pacific, stocks plunged to three-year lows on increased concerns the global economy will slide into a recession. The MSCI Asia Pacific Index tumbled 4 per cent to 106.96 in Tokyo. The index has slumped 32 percent this year.
Japan's Nikkei 225 Stock Average lost 4.6 percent to 11,199.07, Topix was down 2.97 per cent, Hang Seng fell 1.38 per cent Singapore’s Strait Times index lost 1.69 per cent and Australia’s S&P / ASX gave up 2.63 per cent.
Meanwhile, crude oil fell 9.8 per cent to $96.37 a barrel in New York on Monday. The Indian rupee was flat at 46.96 against the US dollar.
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