Mumbai, Oct 10 (UNI) The Sensex of Bombay Stock Exchange (BSE) today further crashed by 696.09 points at 10,632.27 points in the opening session, on sustained selling pressure by local bear operators in view of discouraging advice from global markets.
The Nifty of National Stock Exchange also resumed low at 3,502.05 points, down by 11.60 points.
Brokers said a global sell-off in equities following worries about a global recession, created havoc on the domestic market in early trade. The BSE Sensex slumped more than 1,000 points at the intra-day low. However, the market recovered later from the early lows, after the sharp cut in Cash Reserve Ratio (CRR) was announced by the Reserve Bank of India (RBI) within minutes of commencement of the trading session.
ICICI Bank, Tata Steel and Reliance Communications fell more than nine per cent each. Disappointing guidance given by IT major Infosys, which was down by 5.5 per cent at Rs 1,186.20, also marred investor sentiment in early trade.
Stocks fell across the globe despite worldwide central bank measures to stave off a crisis. Bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety with Asian stocks tumbling today, following overnight setback in US stocks.
The RBI cut the CRR second time in the week. The central bank cut CRR by 150 basis points after it was cut by 50 basis point earlier in the week.
US futures slumped indicating a weak opening for the markets today. Nasdaq futures was down by 34 points, while Dow Jones futures was down by 248 points.
Overnight, US stocks slumped more than seven per cent on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill.
The BSE 30-share Sensex is now down by 738.50 points at 10,589.86. The index plunged 1,088.50 points at the intra-day low of 10,239.76 at the onset of the trading session. The Sensex fell 424.33 points at intra-day high of 10,904.13.
The S &P CNX Nifty index of NSE was presently down by 314.70 points at 3,392.05 from it last finish of 3513.65 points. The BSE Mid-Cap index was down by 5.45 per cent at 3,791.10. The BSE Small-Cap index was down by 4.48 per cent at 4,488.69.
Reliance Industries slumped 7.31 per cent at Rs 1,527. The stock recovered from session's low of Rs 1,480.
Among the major Sensex losers were ICICI Bank, which was down by 9.25 per cent at Rs 402.50 followed by Tata Steel 9.37 per cent at Rs 304.25, Reliance Communications 9.58 per cent at Rs 272.80, HDFC Bank 8.82 per cent at Rs 1,008 and Reliance Infrastructure 9.12 per cent at Rs 580.
The Indian rupee fell to a record low past 49.07 per dollar today, as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India.
As per reports, commercial banks had stopped lending to the three state-run refiners, owing to the industry-wide liquidity crunch and the high debt these companies have accumulated because they sell petroleum products below production cost.
Crude oil fell to the lowest in a year, trading below USD 84 a barrel in New York, as demand declined amid a worsening economic outlook caused by a global credit crisis.
UNI AR/NV RN SKB1147