Mumbai: The markets crashed in early trade following big slump in Asian and US markets, due to Fed cuts economic growth forecast for 2008 and 2009 and weak housing data.
This is the seventh day in a row that the benchmark indices have been falling towards October lows.
The Indian equities markets opened far lower, compared to last closing figures, and a key index crashed over 300 points within 10 minutes of the opening bell. The cue came largely from Wall Street, where the Dow closed at a five-year low Wednesday.
BLUES AND GLOOM: Investors find it hard to retain confidence as the crashes continue for the 7th day
Selling is seen in banking, technology, capital goods, telecom, metal, real estate adn oil stocks.
At 9:56 am, the Sensex declined by 378 points to 8,395 and the Nifty fell 103 points to 2,531. CNX Midcap lost 103 points to 3,277.
HDFC Bank, Reliance Industries, L&T, BHEL, Hindalco, ICICI Bank, HDFC, Unitech, DLF, Reliance Infrastructure, Satyam, Sterlite, HCL Tech and Idea are major losers. ICICI Bank plunged over 10 per cent.
The Indian rupee hit all-time low of 50.58 to a dollar. Following that, the 30-share benchmark index of the Bombay Stock Exchange (BSE), the Sensex had opened at 8,400.88, already well below its previous close at 8,773.78.
At 10 am, it was at 8,439.49, which was 334.29 points or 3.81 per cent below the last closing figure.
Asian markets are trading extremely weak. Hang Seng, Nikkei and Kospi lost 5-6 per cent. Taiwan, Jakarta, Straits Times and Shanghai tumbled 1-4 per cent.
NYMEX December Crude slipped further on high inventories and decline in demand. It is trading at USD 53.3 to a barrel on the NYMEX. Crude inventories gained by 1.6 million barrels to 313.5 million barrels.
Aluminum is trading at 3-year lows and Copper at 4 year lows. Tin slipped to 3-week lows as inventories gained 27% this month.
US markets breached October lows on Wednesday and closed at 5-year lows, as Federal Reserve cut economic growth forecasts for 2008 and 2009 in FOMC minutes. There are concerns over the fate of auto makers and housing market data was weak. Dow Jones ended down 428 points or 5.1 per cent at 7997 and Nasdaq ended down by 97 points or 6.5 per cent at 1386.4. S and P 500 index closed down by 52.5 points or 6.1 per cent at 806.5.
US markets breach Oct lows; close at 5-year lows
Asian markets open weak after US markets plunge
Inflation data today; CNBC-TV18 poll sees it at 8.82 per cent versus 8.98 per cent
FIIs net sell USD 91.5 million in equity on November 18
MFs net sell Rs 45 crore in equity on November 18
NSE F&O Open Int up by Rs 702 crore at Rs 49,919 crore
Stock Futures add 85 lakh shares in Open Int
Stock Futures start early rollovers, huge build-ups in Dec series
Futures Open Int up by Rs 230 crore, Options Open Int up by Rs 472 crore
Nifty Nov Futures add 1.5 lakh, Dec Futures add 9 lakh shares in Open Int
Nifty Nov at 8-point discount, Dec at 13-point discount
Nifty Open Int Put-Call ratio at 0.91 versus 0.94
Nifty Puts add 2 lakh, Calls add 14 lakh shares in Open Int
Nifty 2600 Put adds 3 lakh shares in Open Int
Nifty 2700 Call adds 8.2 lakh shares in Open Int
Nifty 2600 Call adds 4.3 lakh shares in Open Int
(With inputs from moneycontrol.com and IANS)