Sensex Below 17500; Blood Bath Continues

The Global Markets emanate negative vibes this morning. U.S. stocks plunged, driving the Standard & Poor’s 500 Index to the biggest decline since February 2009, as concern the global economy is weakening prompted a global rout. European stocks retreated, with the Stoxx Europe 600 Index plunging to its lowest level in a year, amid deepening concern that the global recovery is stalling. This morning Asian stocks tumbled, with the regional benchmark index falling more than 10 percent from its May peak, as concern the world economy is weakening sparked a global equities rout that drove the Standard & Poor’s 500 Index to its worst slump since February 2009. In commodities, Oil fell in New York, heading for the biggest weekly decline in three months and wiping out its gain for the year, on speculation fuel demand will falter as the U.S. economy weakens and the European debt crisis worsens. Gold climbed as investors sought a haven from a rout in other financial markets, which plunged on concern that global economic growth is stalling as governments in the U.S. and Europe remain constrained by debt. Copper in London headed for the first weekly decline in six and lead and zinc slumped as concern the U.S. economic recovery may be faltering spurred a sell-off in global equities and commodities. Markets nose-dived in opening trades following sell-off in equities across the globe over sovereign crisis and global growth concerns. The Nifty slipped 134 points, to 5,197, and the BSE Benchmark index declined 343 points, at 17,350 at the opening bell. This was the worst market opening in nearly last two years. On November 6, 2008, the index had opened with a negative gap of 364 points. The Sensex touched a low of 17,220, and is now down 394 points at 17,298. The NSE Nifty has shed 120 points at 5,211. Index heavyweight made deep cuts in opening trades. ICICI Bank, Infosys and L&T plummeted over 3% in the morning session. Reliance Industries slipped below Rs 800 level, down 2% to Rs 759.  Only one component on the Sensex was trading in the green, ONGC was up over 0.5%. On the sectoral front metal stocks were the worst hit following the rout in commodities globally over bleak growth outlook. Also BSE IT index slipped over 3% on concerns that outsourcing demand may get affected if clients in US and Europe resort to spending cuts. Infosys and TCS slipped over 3% each, and Wipro plunged 2.5%. From the broader markets, the BSE midcap and the small cap indices were down over 2.5% each. Market breadth was extremely negative, 1664 stocks declined for 190 stocks which advanced.