The Bombay Stock Exchange’s Sensex declined to the lowest in two weeks on concern credit-market losses will increase and global economic growth will slow.
Reliance Industries, the country’s most valuable company, fell 3.2 per cent, to its lowest since July 16. ICICI Bank, the country’s second-largest lender, slid 2.1 per cent to its lowest in almost two weeks.
Sensex declined 338.32 points, or 2.31 per cent, to 14,324.29 at the close of the day’s trading. All but two stocks in the benchmark declined. The S&P CNX Nifty Index on the National Stock Exchange fell 60.05, or 2.50 per cent, to 4,340.20.
“The credit market losses are worrying,” said R K Gupta, who manages the equivalent of about $100 million of stocks at Taurus Asset Management Company in New Delhi. “It is difficult to gauge how deep the problem is and that will result in markets remaining weak till some clarity emerges.”
Lehman Brothers Holdings said yesterday it posted a $3.9 billion third-quarter loss on $5.6 billion of writedowns, worse than the $2.2 billion loss analysts had predicted.
Lehman’s loss pushed global writedowns and credit losses caused by the collapse in the US mortgage market to $511 billion, according to figures compiled by Bloomberg News.
Reliance fell 3.2 per cent to Rs 2,016.80. ICICI Bank declined 2.1 per cent to Rs 686.45, its lowest since September 1. The two stocks account for about 22 per cent of the Sensex’s weight.
