Sensex plunges nearly 400 points on global cues

Mumbai, Jan 22 (ANI): The Bombay Stock Exchange index Sensex showed a plunge of nearly 400 points on Friday on account of the weak cues from Asian markets.

Reliance Industries and Larsen and Toubro led the plunge among other financials.

Sunil Shah, a stock analyst said, "We had a great fall yesterday also, 400 plus points. Today it went down almost by 400 points and it recovered from the low. Now the reason being - if you notice last three months, market was range-bound."

"It was simply refusing to go up because valuations had become pricey," added Shah.

The fall was in line with a sell off in global equities; with Asian markets tumbling after U.S. President Barack Obama threatened tough new restrictions on banks, sending jitters across markets.

The markets are also awaiting the results of the third quarter, with top mobile operator Bharti Airtel announcing their Q3 results on Friday.

"So far what the Corporates have announced is satisfactory, positive surprises as far as results are concerned. So I think Indian market is promising though it is pricey but very promising," said Shah.

"All eyes are on the government, what kind of reforms they are presenting before the Budget, in the Budget and after the Budget," he added.

Bharti Airtel rose early but slipped to the negative despite beating forecasts with a 2.4 percent rise in its Q3 profits, as strong subscriber additions helped offset an intense price war in the market.

The stock was down marginally, but had risen more than two percent after the results were announced. (ANI)