Markets trimmed losses in late noon trades, owing to buying in ONGC. A marginal recover in European markets also played its part. The Sensex, after opening at 17,350 touched a low of 16,991. The index has recovered somewhat and is now at 17,248 - down 444 points. Nifty is down 137 points at 5,194. The NSE benchmark index had touched a 52-week low of 5,120.
US markets fell overnight on global growth concerns. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor’s 500 Index declined 4.8%. Moreover, on Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months.
"India will benefit from lower commodity prices, especially the decline oil prices will bring down inflation considerably. Even if there is a double dip recession in the West, India may not be as get affected because it is a domestic consumption story. The Reserve Bank of India (RBI) may cut interest rates rather than hike rates given the dip in commodity prices," said Andrew Holland, CEO-Equities, Ambit Capital.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
India's most valuable stock, in terms of market weightage, Reliance, slipped 2.5% after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
Reliance, along with ICICI Bank and Infosys were the major draggers of the Sensex.
BSE IT index slumped 4.2% after the slide in US markets. US is the biggest market for services of Indian IT firms. Realty, auto and bankex dropped around 3% each.
Cipla gained 1% to Rs 310. The company is set to announce results today. Another one from the pharma pack, Ranbaxy, dropped 3.6% to Rs 514. The company reported a 25% dip in Q2 net profit at Rs 243.23 crore for the quarter ended June 30,2011 as against rs 325.71 crore in the corresponding previous quarter.
BSE market breadth continued to be extremely negative. Out of 2,906 stocks traded, 2,512 stocks have declined while 341 have advanced.
US markets fell overnight on global growth concerns. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor’s 500 Index declined 4.8%. Moreover, on Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months.
"India will benefit from lower commodity prices, especially the decline oil prices will bring down inflation considerably. Even if there is a double dip recession in the West, India may not be as get affected because it is a domestic consumption story. The Reserve Bank of India (RBI) may cut interest rates rather than hike rates given the dip in commodity prices," said Andrew Holland, CEO-Equities, Ambit Capital.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
India's most valuable stock, in terms of market weightage, Reliance, slipped 2.5% after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
Reliance, along with ICICI Bank and Infosys were the major draggers of the Sensex.
BSE IT index slumped 4.2% after the slide in US markets. US is the biggest market for services of Indian IT firms. Realty, auto and bankex dropped around 3% each.
Cipla gained 1% to Rs 310. The company is set to announce results today. Another one from the pharma pack, Ranbaxy, dropped 3.6% to Rs 514. The company reported a 25% dip in Q2 net profit at Rs 243.23 crore for the quarter ended June 30,2011 as against rs 325.71 crore in the corresponding previous quarter.
BSE market breadth continued to be extremely negative. Out of 2,906 stocks traded, 2,512 stocks have declined while 341 have advanced.
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