Indices lose 5%, banks worst hit

MUMBAI: Equities remained subdued amid turmoil in global financial markets as investors refused to provide relief by way of bottom buying despite the sharp drop in prices. “Having seen no signs of let up ever since the bullish trend reversed in Indian markets, even long term investors have thrown in the towel,” said a dealer from a local brokerage.

At 3 pm, the Sensex was down 870 points or 5.52 per cent at 14,890.18, making a low of 14,883.95. HDFC (down 11.09%), ICICI Bank (10.21%), Jaiprakash Associates (8.78%), Hindalco Industries (7.3%) and Reliance Energy (6.8%) were the biggest index losers. The Nifty was down 239 points or 5.03 per cent at 4507.20, near the low of 4500.20.

A remarkable rise in crude oil prices, weakening dollar, restricted inflow of foreign investors in emerging Asian stock markets left with no other option but to invest in gold, which surged to an all-time high of $1026 an ounce in overseas markets. At home, gold zoomed past all previous records to open at a new peak of Rs 13,500.

Stocks in Europe and Asia tumbled and US futures retreated after the Federal Reserve cut its discount rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns. The FTSE was down 2.5 per cent, the DAX lost 3.6 per cent and the CAC dropped 2.71 per cent.

Source : TET