The benchmark Bombay Stock Exchange (BSE) Sensex on Wednesday plunged nearly 453 points (3.49 per cent) to 12,529.62 as US, European and Asian stocks tumbled on concerns of a slowdown in the US economy. |
Heavy selling in Sensex heavyweights Infosys, Reliance Industries, Bharti Airtel and ICICI Bank took a heavy toll on the benchmark indices. Bajaj Auto and Gujarat Ambuja were the only heavyweight gainers on the Sensex. |
The BSE Banking Index (down 4.14 per cent) and BSE Information Technology Index (down 3.97 per cent) were the biggest losers. |
The broad-based S&P CNX Nifty lost 3.43 per cent to 3,641.10 points. The markets fell for the first time in the week after witnessing gains on the first two days. |
US stocks wiped out three days of gains after growing mortgage delinquencies heightened concerns of a home-loan crisis spreading across the world's largest economy. |
The Dow fell below 12,000 for the first time since November 6, 2006, in early trade. |
The fear of a slowdown in the US economy means lower export revenues for emerging as well as developed Asian economies because the US has been one of their top export destinations. |
The US Bankers' Association yesterday said the number of borrowers who paid their mortgage payments late has grown to the highest level in the past four years, a sign of slowing of the US economy. |
Markus Rosgen, Citigroup Investment Research's MD, saw yesterday's market movement as a reaction to global sentiments. |
He said the global events would continue to influence domestic market sentiments. |