Markets plunge in opening trades

The markets opened lower tracking sell-off in the world markets following global recession concerns and the health of European banks. The BSE Sensex is at 16,166, down 304 points and the Nifty is at 4,853, down 91 points.

Investors once again were shunning risk as they confronted a grim economic outlook in the United States and over the possibilitt that European banks could be facing higher borrowing costs for the US Dollar loans. There were concerns that banks may have exposure to high debt from the countries in Euro-zone.

Overnight the Dow Jones Industrial Average lost 3.7%, the Standard & Poor’s 500 index was off 4.5% and the Nasdaq Composite Index gave up 5.2%.

In Asia stocks tumbled across the board, mirroring losses on Wall Street. The Hong Kong’s Hang Seng Index lost 2.5%, China’s Shang,hai Composite gave up 1.3% and Japan’s Nikkei Stock Average declined 2.1%.

Back in India, most of the technical analysts said that the Indian markets may have entered a bear patch as the benchmark indices have fallen 20% from the November peak. Analysts recommend investors not create fresh positions as they expect the Sensex to slip below 15,500 levels and stocks would be available at much cheaper levels in the near term.

Among the sectoral indices, BSE IT and TECk are the major losers down 6% and 5%, respectively. Infosys, HCL Technologies, MphasiS and Wipro, down 5-7%, are the top losers from the IT Sector.

Sun Pharma Industries, NTPC, ONGC, Hindustan Unilever and ITC are the major gainers among the Sensex 30 stocks. While, Infosys, Wipro, TCS, Larsen & Toubro and Hindalco Industries, down 4-7%, are the major losers among the pack.

The overall market breadth is negative as 1,330 stocks decline against 223 advancing ones.