Global Worries Weigh Heavy; Markets Closes Deep in Red

The Indian markets slipped more than two per cent following the rout in world equities on fears of a global recession and worries over the health of European banks. The Sensex opened lower and extended losses soon after. The index slipped below 16,000 for the first time since May 2010 in the afternoon session to a low of 15,998. The Sensex recovered from day's low in the last leg of the trade, and closed at 16,141, down 325 points. The Nifty was at 4,845, down 99 points. The main draggers for the day were the IT and Capital Goods indices that closed the day with a decline of more than four percentage points followed by the Teck index that closed the day in red declining more than three and half percentage points. On the global front, European stocks sank, dragging the Stoxx Europe 600 Index to the biggest two-day drop since March 2009, amid growing concern the global economy is slowing. Asian shares and U.S. index futures retreated.