Markes slipped 2% following the rout in world equities on fears of a global recession, which may be far worse than 2008, and worries over the health of European banks.
The Sensex opened lower and extended losses soon after. The index slipped below 16,000 for the first time since May 2010 in the afternoon session to a low of 15,998. The Sensex recovered from day's low in the last leg of the trade, and closed at 16,145, down 325 points. The Nifty was at 4,845, down 99 points (provisional).
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Back in India, concerns over earnings downgrades and political instability also loomed on investors' mind. A K Prabhakar, Senior Vice President-Equity Research from Anand Rathi said, “The current market rout is linked to foreign investors pulling out money from politically affiliated companies as Karnataka Mining scam and 2G Scam have left a bad taste.” Foreign institutional investors have sold Rs 6232 crore in the cash market since the beginning of August.
Asian markets have echoed last week’s fall as inve
