Friday, December 12, 2008
Markets open lower as US auto bailout fails
Investors woke up to a weak stock market as sentiments plummeted with a failed bailout of the US auto industry and a key Indian market opening with a loss of 294.84 points or 3.06 percent one hour into trading.
The failed bailout will affect a lot of Indian auto ancillary companies who were involved in exports to the Big Three US auto companies.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) stood at 9,350.62 points against the previous close of 9,645.46 points.
The broader-based 50-share S&P CNX Nifty of the National Stock Exchange (NSE) also fell with a fall of 86.6 points or 2.97 points and was ruling around 2833.55 points.
Key benchmark indices saw a slide with almost all the BSE sectoral indices showing a negative trend.
US markets also fell with a key index of the New York Stock Exchange (NYSE) finishing 126.34 points lower or 2.24 percent. The Nasdaq index closed 3.68 percent lower than its previous close.
The Nikkei, a key index of the Tokyo Stock Exchange, was ruling 5.37 percent lower than Thursday's close while the Hang Seng of the Hong Kong Stock Exchange fell by 6.9 percent over its previous close.