Market crashes as Sensex plunges over 820 pts

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Mumbai, Sep 15: Sensex crashed over 820 points in early trade and fell below 13,000 level on Monday, Sep 15 on nervous selling by funds following serial blasts and depreciating rupee. Nifty slipped by 260 points or 5.2 per cent to 4,005.70.

The rupee has also touched 46 to a dollar for the first time in two years. It has hit that level on September 29, 2006. They said depreciating rupee, which dipped to two-year low of 46 level against the US dollar, also affected the trading sentiments. Stocks plunged as investor confidence was shattered as the loss-making US investment bank Lehman Brothers stared at a potential collapse after Bank of America and Barclays abandoned talks of a buyout.

Brokers said key benchmark indices witnessed a disastrous opening, spooked by reports that the Bank of America struck a USD 50 billion deal to buy US investment banking major Merrill Lynch. Meanwhile, reports just filtered in indicated that US investment bank Lehman Brothers is filing for Chapter 11 bankruptcy.

Index heavyweight Reliance Industries (RIL) plunged to 52-week low below Rs 1,900. IT pivotals were the worst hit in the early slide, with Satyam Computer Services plunging over 10 per cent. All the 30-members from the Sensex pack suffered losses.

Asian markets were trading lower today, as select benchmark indices in Taiwan and Singapore fell 4.32 pc and 3.18 pc respectively. Most major Asian equity markets were closed for public holidays.

Later, the BSE 30-share Sensex was down 760.45 points, or 5.43 pc, to 13,240.36. It recorded the day's low of 13,228.19 in early trade.

The S&P CNX Nifty index of National Stock Exchange (NSE), however, resumed high at 4,231.95 points from it last close of 4,228.45.

Later, it recorded the day's high and low at 4,237.25 and 3,982.30 points respectively during the mid-session.

IT pivotals tumbled. India's fourth largest software services exporter Satyam Computer Services plunged 10.37 pc to Rs 364.60. It was the top loser from Sensex pack.

Among others, Wipro was down 6.67 pc to Rs 391.75, Infosys down 4.01 pc to Rs 1,578 and TCS edged lower by 7.07 pc to Rs 751.50.

Reliance Industries slumped 4.02 pc to Rs 1,852.90. The stock hit a 52-week low of Rs 1,833.25 in early trade. ICICI Bank slipped 6.72 pc to Rs 609. State Bank of India fell 4.36 pc to Rs 1,446.60.

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