third in a row; Sensex down 1,093 points

Mumbai The impending global recession has created panic among investors across the world. As a result, bearish investors took to capital markets around the world, causing local market indices to fall as much as two percent on Friday. The Sensex fell over a thousand points in the weekend trade as foreign institutional investors pulled out of the equity market again.

Profit-booking was boosted by adverse global conditions and Fitch capping the revised estimate of domestic economic growth at 7 per cent. As a result, the Bombay Stock Market Index – Sensex – fell 1,093.22 points or 1.82 per cent to end the day at 58,840.79 on Friday. The Sensex lost 1,246.82 points to end at 58,687.17 in the day’s trading. On the other hand, the Nifty, the national stock market index, fell 346.55 or 1.94 per cent to end at 17,530.85.

With inflation rising on a monthly basis in the US, the Federal Reserve is likely to increase interest rates aggressively. As a result, markets around the world, including the US, fell as investors took a cautious approach and preferred taking profits. On the domestic front, stocks of information-technology, construction and auto manufacturing companies were the top sellers, said Vinod Nair, head of research, Geojit Financial Services.

In the Sensex, Tech Mihadra and UltraTech Cement fell 4-4 per cent each. After that, shares of Infosys, Mihadara and Mihadara, Wipro, TCS, Nestle and Reliance Industries closed in the negative.

Only IndusInd Bank shares were trading higher. Selling continued in the shares of foreign investors and they sold shares worth Rs 1,270.68 in Thursday’s session.

952 degree loss in a week

Last week, the Sensex lost 1.59 per cent and lost 952.35 points. On the other hand, the Nifty has declined by 302.50 points, down 1.69 per cent last week.

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