Within minutes of opening, the BSE Sensex fell mainly in the stocks of banking, metal, realty and IT sectors. The National Stock Exchange (NSE) index Nifty fell by 135 points or 3.40 per cent at 3715 with all the heavy-weight stocks trading in negative zone. Major losers in Nifty were Reliance Infra, HDFC bank, Infosys, Satyam Computers, BHEL and Larsen and Toubro.
The Sensex of the Bombay Stock Exchange (BSE) today nosedived by 417.57 points to 12,178.18, in the opening session, from its previous close on continued selling pressure by Foreign Institutional Investors and bearish phase in the global markets.
Similarly, the Nifty of National Stock Exchange (NSE) resumed low at 3,848.70 points, as against the previous day's close of 3,850.05.
Marketmen said ''Key benchmark indices opened weak mirroring carnage in the global markets triggered by US lawmakers voting aganist the USD 700 billion rescue plan of the US Government for the financial institutions.'' The market, however, staged a strong rebound from the lower level. IT stocks slumped. Jaiprakash Associates and Tata Steel were down by more than five per cent each. Reliance Communications and Tata Power Company were down more than four per cent each. ICICI Bank rose snapping yesterday's sharp fall. Asian markets which opened before Indian market, were weak, they said.
Meanwhile, the global central banks today more than doubled the amount of dollar funding to USD 620 billion but the move showed no signs of thawing the freeze in money markets, where banks are hoarding cash and bracing for more trouble ahead in the deepening year-long credit crisis.
US stocks slumped yesterday as the S &P 500 index fell 106.62 points, or nearly nine per cent, to 1,106.39. The Nasdaq Composite index declined 199.61 points, more than nine pc, to 1,983.73. US light crude for November 2008 delivery fell 59 cents to USD 95.78 a barrel today, plunging USD 10.52, its second biggest fall since April 23, 2003, on the previous day.
Asian markets were trading weak today, post overnight bloodbath on the US markets. Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's Seoul Composite and Taiwan's Taiwan Weighted fell between 1.57 per cent to 4.58 pc, triggering the downward sentiment on the Indian bources, brokers pointed out.
Later, the BSE 30-share Sensex was down 220.74 points, or 1.89 pc, to 12,375.01. Its low was of 12,153.55 hit in early trade, the lowest level in two years. Meanwhile, it recorded the day's high of 12,523.49 points.
The S &P CNX Nifty was down 65.55 points. It hit a low of 3,715.05 in early trade, its lowest level in 17 months. The BSE Mid-Cap index was down 3.2 pc at 4,577.98 and the BSE Small-Cap index was down 3.45 pc at 5,361.36.
Reliance Industries fell 1.24 pc to Rs 1,909. Jaiprakash Associates was down 5.67 pc to Rs 100.65, Tata Steel came down 5.03 pc to Rs 422.95, Reliance Communications eased 4.32 pc to Rs 312.20, Tata Power Company dropped 4.38 pc to Rs 877 edged lower among the Sensex pack.
IT stocks slumped too. Infosys was down 3.38 pc to Rs 1,344.90, Satyam Computer Services slipped 4.65 pc to Rs 278.50, Tata Consultancy Services came down 3.66 pc to Rs 594 and Wipro declined by 4.37 pc to Rs 328.10 edged lower.
Among the gainers, ICICI Bank rose 2.26 pc to Rs 504.45. ONGC was up 1.14 pc to Rs 1,035, followed by State Bank of India by 0.31 pc to Rs 1,409.30, HDFC by 1.34 pc to Rs 2,060.25, Reliance Infrastructure by 0.45 pc to Rs 797.50 and Mahindra &Mahindra by 0.59 pc to Rs 505.