Wednesday, March 07, 2007

Sensex tumbles on fears of global recession - hindu

Indian stock markets closed deep in the red on Monday in line with other global markets and the benchmark Bombay Stock Exchange 30-share sensitive index (Sensex) lost 471.09 points on fears of recession in the world economy and sustained foreign institutional pullout. Among various sectors, automobile, capital goods, metal, pharmaceuticals and information technology are the major sector indices that ended negative.

The Sensex dipped by 471.09 points or 3.66 per cent at 12415.04, and the Nifty lost 150.25 points or 4.03 per cent at 3576.5. Last week, some of the announcements in the Union Budget, especially the increase in the dividend distribution tax, hit the market sentiment negatively.

PTI reports:

The turmoil on bourses began with a nearly nine per cent fall in the Chinese market on February 27 that triggered a global meltdown inducing fears of a slowdown in the world economy and sustained FII pullout from equity markets.

Key indices in Hong Kong, Japan, South Korea, Singapore and Taiwan ended down 2.5 per cent to 4 per cent.

The Dow Jones Industrial Average ended 120.24 points down at 12114.10 and the Nasdaq Comp Index 36.21 points at 2368 on Friday. Brokers said foreign institutional investors seem to be pulling out to invest in countries such as Japan which now could provide higher yields owing to strengthening yen.

Rupee crashes

In an unprecedented slide by 34 paise in a single session, the rupee ended at a ten-week low of 44.63/64 a dollar on Monday, pulled down by weaker Asian currencies amid fears of sustained foreign institutional investment pull out from equity markets.

Source : http://www.hindu.com

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