The Epicenter of Financial crisis has now shifted to Dubai as the Dubwai World congolmerate has defaulted on loans and $60 bn loans are vulenrable which could send banks profitablity knocking down. [None of the Indian Banks have exposure to Dubai World]
Cautious investors continued to unwind their positions in the late afternoon trades to avoid a big hole in their investment portfolios. The selling pressure was evident across the board with leadership from realty, metal and banking counters. It was looking like a free fall in the benchmark indices as they were not responding to any crucial support. Among front liners, Jaiprakash Associates, DLF and L&T lost anywhere between 6.40% and 4.75%. The market breadth on the BSE continued to be one of the weakest in past few trading sessions with almost 7 stocks losing for every gainer. The global picture worsened further as the European markets witnessed sharp cuts in the opening trade.
The BSE SENSEX touched a high(morning) and a low of 16,718.80 and 16,264.86, respectively. Asian markets were reeling under pressure. Shanghai Composite declined 2.36%, Hang Seng shed 4.99%, Nikkei 225 dipped 3.22%, Straits Times contracted 1.10%, Seoul Composite plummeted 4.69% and Taiwan Weighted plunged 3.21%.