Stocks

Sensex tumbles over 300 points as global growth worries spark sell-off

Agencies Oct 10 | Updated on March 12, 2018 Published on October 10, 2014

The Indian benchmark indices lost over 1 per cent on Friday due to sell-off in global equities on concerns about the global economy. The head of IMF warned that Euro Zone could slip into recession and this influenced investor sentiment.

The BSE Sensex fell 1.28 per cent or 339 points to 26,297 while the NSE Nifty lost 1.26 per cent or 100.60 points to 7,860.

A weak trend on other Asian markets following overnight sell-off in the US markets also triggered selling by participants.

The 30-share barometer had gained 390.49 points in the previous session.

Barring IT and TECK, all the sectoral indices finished in negative zone. Metal index (-4%) lost the most followed by Auto (-2.56%), Bankex (-1.78%) and Capital Goods (-1.46%).

Tata Motors (-4.77%), Hindalco (-4.66%), SSLT (-4.2%) and Tata Steel (-4.16%) were the top losers in the Sensex 30.

Infosys’ shares soared 6.5 per cent to Rs 3,884 after the company reported its consolidated net profit rose by 28.6 per cent to Rs 3,096 crore in July-September 2014 quarter.

Global markets

European shares dropped on Friday, extending their recent pull-back and tracking steep losses in equities worldwide on mounting worries over the pace of global growth.

At 0740 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 per cent at 1,305.99 points, hitting a level not seen since early August. The benchmark index has tumbled 7.5 per cent since mid-September.

The sell-off comes on the back of weak data from Germany, Europe's biggest economy. On Thursday, data showed German exports in August fell the most since January 2009, and figures earlier in the week showed steep drops in industrial orders and output.

European markets were tracking a sell-off in equities globally, which saw major US stock indexes slide 2 per cent on Thursday on worries about the global growth outlook.

Asian shares shuddered and Brent crude oil prices tumbled to their lowest since 2010 on Friday after weak German export data raised fears that Europe's economic woes could drag down the global economy.

Many investors fear that the gradually recovery US economy - the world's largest, but comprising less than a quarter of the entire global economy - cannot escape unscathed as Europe stalls and other big economies, including China, Japan and Brazil, face their own hardships.

Japan's Nikkei share average fell for a fourth straight day on Friday, hitting a two-month low on concern about the global economy, and falling crude oil prices hurt oil shares. The Nikkei share average ended 1.2 per cent down at 15,300.55, the lowest closing since August 13. For the week, the benchmark dropped 2.6 per cent. Japanese markets are closed on Monday for a national holiday.

Hong Kong shares tumbled nearly 2 per cent on Friday on weakness in global equity markets plus jitters over a possible flare-up in pro-democracy protests in the city.

The Hang Seng Index dropped 1.9 per cent to 23,088.54 points.

Published on October 10, 2014
null
This article is closed for comments.
Please Email the Editor