MUMBAI: Equities opened sharply lower on Wednesday extending a global sell-off as fears of the US economy heading into recession heightened late Tuesday.
At 10 am, the Bombay Stock Exchange’s Sensex was down 643 points or 3.44 per cent at 18,020.30
National Stock Exchange’s Nifty was down 213 points or 3.88 per cent at 5271.20.
ABB (down 5.03%), Unitech (4.42%), Dr Reddy’s Laboratories (4%), NTPC (3.87%), Ranbaxy Laboratories (3.67%) and Tata Power (3.06%) were under pressure.
“Though liquidity is abundant and open interest in derivatives very low, the issue is a weakening US economy. Our market cannot rise in an environment where the US continues to weaken. The Sensex had recouped 60 per cent of the 5875 loss it had seen from the all time high. A lower top has been made at 18895. The first support is at 18312 and is unlikely to hold. The next logical support is at 17534, but we are unlikely to travel there today. The nascent recovery is likely to be nipped in the bud,” said Anagram Stock Broking in a note.
US stocks plunged Tuesday after a key service sector gauge contracted in January possibly signaling that the US economy is already in recession. The ISM Survey for the services sector showed the reading at 41.9 as against expectations of 53. A reading below 50 indicates contraction of economy.
Dow Jones Industrial Average dropped 2.93 per cent, the Standard & Poor 500 Index lost 3.2 per cent, while the Nasdaq Composite Index fell 3.08 per cent.
Elsewhere in Asia, the Nikkei 225 was down 4.05 per cent, the Hang Seng down 5.85 per cent and the Straits Times down 3.66 per cent.
At 10 am, the Bombay Stock Exchange’s Sensex was down 643 points or 3.44 per cent at 18,020.30
National Stock Exchange’s Nifty was down 213 points or 3.88 per cent at 5271.20.
ABB (down 5.03%), Unitech (4.42%), Dr Reddy’s Laboratories (4%), NTPC (3.87%), Ranbaxy Laboratories (3.67%) and Tata Power (3.06%) were under pressure.
“Though liquidity is abundant and open interest in derivatives very low, the issue is a weakening US economy. Our market cannot rise in an environment where the US continues to weaken. The Sensex had recouped 60 per cent of the 5875 loss it had seen from the all time high. A lower top has been made at 18895. The first support is at 18312 and is unlikely to hold. The next logical support is at 17534, but we are unlikely to travel there today. The nascent recovery is likely to be nipped in the bud,” said Anagram Stock Broking in a note.
US stocks plunged Tuesday after a key service sector gauge contracted in January possibly signaling that the US economy is already in recession. The ISM Survey for the services sector showed the reading at 41.9 as against expectations of 53. A reading below 50 indicates contraction of economy.
Dow Jones Industrial Average dropped 2.93 per cent, the Standard & Poor 500 Index lost 3.2 per cent, while the Nasdaq Composite Index fell 3.08 per cent.
Elsewhere in Asia, the Nikkei 225 was down 4.05 per cent, the Hang Seng down 5.85 per cent and the Straits Times down 3.66 per cent.
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