Bad news from South Europe and North Korea combined to spook the world markets on Tuesday, bringing down stocks, bonds and currencies across the board. India?s 30-share benchmark index Sensex fell 447 points or 2.71% at 16,022, its lowest close since February 15, as investors collectively lost Rs 1.6 lakh crore. NSE?s 50-share Nifty also plunged 2.78% to close at 4.806.75 points. Reliance Industries, which holds the maximum weight among Sensex scrips, lost 3.39% to close at Rs 986.85. All sectoral indices on the BSE declined. Continuing their selling spree, foreign institutional investors offloaded stocks worth Rs 1,464 crore.
A report in the Korean media that North Korean dictator Kim Jong-il has asked his army to be ready for war with the South hammered stocks across the region, with South Korean defence stocks among the few gainers. Sentiments in Europe were shaken following the seizure of a Spanish bank and the news of four others combining to form Spain?s fifth-largest lender. The S&P 500 opened lower, and was trading 22 points down or 2.03% at 1052 points at 1200 local time.
Nikkei, Hang Seng and Jakarta Composite fell over three percentage points, down 3.06%, 3.47% and 3.66%, respectively.