Indian stocks fall nearly 3% on opening
The benchmark 30-share Sensex on the Bombay Stock Exchange lost 505.89 points or 2.98 percent to 16,484.29 within minutes of the opening.
The index then retraced on bargain hunting to 16,682.18 but was still down nearly 2.0 percent.
Software exporters with large exposure to the US market, telecoms, metal and property stocks were worst hit, as global markets reacted to last week's US credit downgrade.
Fund managers and dealers were advising clients to sell off equities as global markets tumble further, even though India's government and the central bank have tried to allay investor concerns.
"There is panic setting in. We expect further falls. We are advising clients to sell off," said Jagannadham Thunuguntla, head of research with New Delhi-based SMC Global Securities.
Kim Eng Securities' analyst Jigar Shah said he did not know how far the share index might drop.
"The fear is about growth. We expect a certain amount of dilution in stock valuations," he added.
India's largest software outsourcer Tata Consultancy Services (TCS) lost 4.46 percent in early trade while rival Wipro shed 3.95 percent. Infosys dropped just over 3.0 percent.
Leading vehicle maker Tata Motors was down for a second straight day, falling 4.15 percent on concerns of slowing auto sales, as interest rates and input costs continue to rise.
Global fund managers and policy makers said they will scrutinise statements from the US Federal Reserve later on Tuesday to review policies, amid doubts about what it can do to head off a double-dip recession.
India's government on Monday said the country was in a better position to deal with global uncertainty than most other nations, while the central Reserve Bank of India said the impact of the US downgrade on India would be "limited".
India's economy fared better than most Western countries during the last global financial crisis, posting 6.8 percent annual growth in 2008-09, as it remains largely insulated, led by local demand for most of its goods and services.
COMMENTS (12)
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@Hatim:
Norway because of recent Norway problem, but what about yesterday's Indian sensex,??
they will start pakistanization or islamization of Norway, no doubt, won't you?? that is the problem.
hello,, you first take care of your own peoples and yourself.. they are showing their anger over that people, who are supporting terrorists and terrorist activities, cheating their own countries just because religion ( check your countries status also, i can see that kind of comments in ET, is that mean they are against muslims?). India is not only for Hindus and Muslims, but there many other religions like Christian, Sikh, Jain, Buddha, Jews,.......... and others also, if Hindus are that much religious ( according to you) then there would not be any congress, but only BJP everywhere (this is one of direct result i can show you now).
@My name is indian: Your post is awarded Saat Soney ka Sitaraas, for the most botched Blog thread propaganda campaign. LOL! I guess your stocks are really sinking fast.
@poppy
Have you seen the Indian newspapers? There was a headline three days ago about there being more Pakistanis in Norway than Indians. Not only that, but they always twist the topic if a news article has anything to do with Pakistan to show how "evil" we are. We should distance ourselves from India. After reading user comments on Indian newspaper websites, I have understood that the general Indian public has no good intentions for Pakistan or even their Muslim population.
@poppy This news in ET because india overtake your et, and its just not that india far ahead from pakistan in every field.
@Fighter: Keep living in Pipe dreams & fooling your country men. Its good for us that you believe in such things.
why this is a news in pakistani newspaper ?
@Fighter:
what are the other fields??
The Sensex recovered the losses and ended just 0.78% down. Whereas KSE ended more than 3% down.
@Fighter: This is not about war. It's about economy. The effect is due to slowdown in global economy. This is a temporary effect.
India and China are future leaders.
@Fighter: ??!!! before commenting, look @ KSE 100
One day we will overtake India in this field too. We just have to get ourselves out of this mess first.