Markets Open Sharply Lower On Weak Global Cues - Oct 8, 2008

The markets today opened extremely lower tracking weak cues form the global markets. Investors are taking calculative steps due to concerns on fears of a global recession on the financial crisis and are also nervous ahead of holiday on Thursday. All the sectorial indices are trading in red mainly led by the Capital goods, Metal, Oil & Gas, Bank and IT stocks. The BSE Sensex is now trading below the 11,100 mark and the NSE Nifty below the 3,550 mark.

On the Global market front, the Asian markets continue their dives for 5th successive session as Hang Seng index down by 5.5% and Nikkei 225 index down by 4.9%.The US stock market on Tuesday ended sharply lower on weak outlook from Bank of America and cautious comments from Fed Chairman Ben Bernanke. Further, the Fed''s plan to increase short-term corporate borrowing and the formation of Commercial Paper Funding Facility (CPFF) to improve liquidity didn’t provide much enthuse into the market. The Dow Jones Industrial Average (DJIA) dropped by 508.39 points to close at 9,447.11.

The NASDAQ Composite (RIXF) index decreased by 108.00 points to close at 1,754.01 and the S&P 500 (SPX) fell 60.66 points to close at 996.23.The BSE Mid Cap and the BSE Small Cap stocks are also trading sharply lower in the early trade.The overall market breadth is negative as 1570 stocks are declining whereas 172 stocks are advancing on BSE.Sterlite Industries reported the top loser from the BSE Sensex pack, as it is trading with a loss of (11.99%) at Rs.276.40 while there is no gainer as all 30 components are trading in red.

At 10.30AM, the BSE Sensex was down by 649 points at 11,045.34 and the Nifty was lower by 192 points to 3,414.55The BSE Mid Cap decreased by 251 points to 4,005.39 and the BSE Small Cap dropped by 246 points to 4,730.29.BSE Capital Goods index dropped by 544.69 points to trade at 8,573.83. The top losers are Gammon India decreased by (14.73%) to Rs.108.00, Suzlon Energy down by (13.72%) to Rs.107.50, Jyoti Struct declined by (10.27%) to Rs.79.05 followed by Reliance Industrial Infra dropped by (9.53%) to Rs.437.00.BSE Metal index lost 529.90 points to trade at 7,004.13. The major losers are Sterlite Indus, Gujarat NRE C, Jindal Saw and Hindustan Zinc decreased by (13.37%), (11.94%), (11.55%) and (9.91%) to Rs.272.05, Rs.40.95, Rs.415.05 and Rs.305.60 respectively.