The 30-share benchmark index Bombay Stock Exchange (BSE) Sensex and broad based National Stock Exchange, Nifty opened low on Thursday and remain highly volatile during early trade. The Sensex fell by over 89 points in opening trade on Thursday.
The 30-share Sensex, which gained 272.60 points in the previous session, fell by 89.41 points, or 0.52 per cent, to 17,041.10 in the first few minutes of trade. Nifty index shed 27.40, or 0.53 per cent, to 5,133.60. Stocks of IT, auto, realty, metals and banking sectors came under selling pressure, which dragged down the Sensex.
Asian Markets on Thursday
In early trade on Thursday, Japan’s Nikkei 225 index sank 1.3 per cent to 8,922.32, Hong Kong’s Hang Seng index stumbled 1 per cent to 19,489.03, Australia’s S&P/ASX 200 declined 1.4% and Tokyo Stock Exchange eased 1.7% to 763.23. Though South Korea’s Kospi index reversed earlier losses and rose 0.8 per cent to 1,820.47.
U.S. stocks again tumbled on August 10 amid concerns of Europe failing to contain its debt crisis. The Dow Jones Industrial Average declined to its lowest level since September closing below 519.83 points, or 4.6 percent below its Tuesday level. The S&P 500 fell 4.4 percent to 1,120.76 in New York.
Banking shares were the worst sufferers as banks are more exposed to a deteriorating economy. As the costs to protect the government debt of Greece, Italy, Spain and France rises, there are concerns of a spillover effect of the European debt.
Bank of America Corp. and Citigroup Inc. dropped more than 10 percent.
Walt Disney Co., world’s largest theme-park company, tumbled 9.1 percent on concerns that low consumer confidence may hurt its businesses.
The S&P 500 has fallen 18 percent from this year’s high on April 29 on concern about Europe’s debt crisis and a political battle over the U.S. debt ceiling that prompted S&P to cut the country’s credit rating.
On Tuesday only, the US benchmark gauge had jumped 4.7 percent as the Federal Reserve said it would keep borrowing costs at an all-time low and was prepared to use a range of tools to bolster the economy.