Sensex opens low by 379 pts

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Mumbai, Oct 8 (UNI) The Sensex of the Bombay Stock Exchange (BSE) today opened in the red at 11,316.24 points, down by 379.00 points, from its previous close on sustained heavy offloading by Foreign Institutional Investors and other operators.

Similarly, the Nifty of National Stock Exchange (NSE) also opened in the negative territory at 3,604.40 points, with a loss of 2.20, from its last close. Both the indices were quoted below 11,000 for BSE and 3,600 levels for NSE in the mid-morning session.

Nifty and Sensex nosedived by 203.00 points to 3,403.60 and 730.23 to settle nearly two-year low at 10,965.01 points, respectively, in the mid-morning session.

Marketmen said ''The key benchmark indices slumped to their lowest level in more than two years on fresh setback in global markets caused by growing credit market worries. Leading indices capital goods and IT stocks were the key losers.'' Sterlite Industries fell more than 12 per cent and Satyam Computer Services was down more than 10 per cent. Shares of equipment makers for nuclear power plants, L &T and Bharat Heavy Electricals (Bhel), dropped despite reports that India and US will sign the civilian nuclear deal on October 10.

Key benchmark indices in Asia were down between 3.08 pc and 6.63 pc today, even as central banks across Asia stepped up to offer more support to commercial banks in a bid to ease painful pressure on funding costs from a vicious global credit squeeze.

US stocks plunged yesterday, as the Dow lost more than 500 points and all the major indexes slid more than five per cent. The Standard&Poor's 500 index saw its first close below 1,000 in five years.

Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately were not enough to calm nervous investors.

Reliance Industries slumped 6.02 pc to Rs 1,574.60. Larsen &Toubro was down 6.31 pc to Rs 944.50, followed by Suzlon Energy by 7.78 pc to Rs 114.90 and Bharat Heavy Electricals by 4.12 pc to Rs 1,435.

Rupee, falling towards a six-year low, provided no respite to software shares as they plummeted in a weak market. BSE IT index fell 6.37 pc to 7,045.55 and the sectoral index was the second major loser from the sectoral indices on BSE. Sectoral heavyweights like Satyam Computer Services slipped 10.8 pc to Rs 248.90, Tata Consultancy Services came down nine pc to Rs 524, Wipro eased 7.21 pc to Rs 284.50 and Infosys declined 7.14 pc to Rs 1,211.

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