Domestic equity bourses fell sharply in the wake of a global sell-off after Citigroup reported losses of nearly $10 billion in the fourth quarter of FY07 due to subprime write-offs, as well as disappointing US retail figures.
Among Asian markets, the Hang Seng was the biggest casualty, losing 1,386.93 points to close at 24,450.85 points. Japan?s Nikkei-225 lost 468.12 points, or 3.35%. Other Asian markets were down in the 1.50-3.50% range.
The 30-share Sensex of the BSE ended the day at 19,868.11 points, losing 382.98 points, or 1.89%, after an intra-day fall of 737.84 points to touch 19513.25 points. With Wednesday?s fall, the benchmark Sensex has lost 959.34 points, or 4.60%, in the last three trading sessions. The broader S&P CNX Nifty of the NSE ended at 5,935.75 points, losing 2.28% or 138.5 points.
Gopal Agarwal, senior fund manager, Mirrae Asset Global, said, ?Imbalances in the global market with a poorer-than-expected earnings season in the US have cemented the view that the US economy is heading towards a slowdown.?
According to provisional figures provided by the stock exchanges, FIIs were net sellers to the tune of Rs 2,517.59 crore on Wednesday. Across the board selling resulted in weak market breadth, with 2,207 BSE stocks declining, compared to 615 stocks that advanced.