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2008-06-09

Crude Oil Effect: India markets plunge into red

Soaring crude oil prices and fears that the global economy is going into a recession plunged India’s stock markets on Monday into the red.


The benchmark Mumbai Stock Exchange index (Sensex) fell below 15,000 by 700 points thanks to heavy selling. When the markets closed, the Sensex was at 15,128.04, down by 444.14 points from its previous close. Similarly, the Nifty was down by 107.90 points at 4519.90.


The blue-chip stocks that fell the most were Reliance Industries by 4.2 per cent at Rs 2,147.55, Tata Steel by 4 per cent at Rs 793.25, SBI down 5 per cent at Rs 1,273.80, L&T 4 per cent at Rs 2,573, Infosys Technologies 2.1 per cent at 1,943 and ACC 5 per cent at Rs 596 and ICICI Bank 4.5 per cent at Rs 734.


Marketmen said inflationary concerns due to rising fuel prices, which touched all time high of $139.12 a barrel on Friday, sparked the downfall in stocks.


Weakening trends in global stock markets and an increase in US unemployment rate also dampened the trading sentiments here. In the US, Dow Jones Industrial Average plunged 3.13 per cent while the tech-heavy Nasdaq composite fell 2.96 per cent.


Asian markets were also in negative zone. Singapore shares were trading about 2 per cent down while Japan’s Nikkei-225 index fell more than 2 per cent in early trade

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.