Millennium Post

Greek woes, oil rate slide send world, Indian mkts into tizzy

The Nifty also tanked 251 points, or 3 per cent. Both the bellwether indices closed at more-than two-week lows. Panic selling sent markets on a free fall with losses across sectors, traders said, adding that investor wealth plunged by nearly Rs 3 trillion as four counters fell for one that rose.

Oil prices continued to drop, with the US benchmark contract briefly falling below $ 50 a barrel for the first time in more than five years on concerns about ample global supplies and weakening economic growth. Oil & Gas, realty, metal, capital goods, auto, consumer durable and Banking shares took the lead in the downslide.

“Markets globally remained weak. Speculation about probable exit of Greece from the Euro region and faltering oil prices too contributed towards grim market mood,” said Bonanza Portfolio Senior Vice President Rakesh Goyal.

The BSE 30-share gauge resumed with a downside gap and gradually moved southwards to break 27,000-mark to a low of 26,937.06 before concluding at 26,987.46 – logging a steep fall of 854.86 points or 3.07 per cent. This its worst drop since 869.65-point crash on July 6, 2009.

As many as 29 out of 30 Sensex-based scrips closed in the red with the biggest loser ONGC falling 6 per cent while HUL was the lone gainer. In tandem with overall trends, the BSE small-cap and mid-cap indices lost 2.95 per cent each respectively.

The 50-issue NSE Nifty stumbled by 251.05 points, or 3.00 per cent, to end near 8,100-level at 8,127.35. As stock markets crashed sharply, the marketplace was rife with speculation about a ‘fat finger trade’ in a future contract of benchmark Nifty even as NSE officials maintained that trading was normal.

Fears mounted that an election in embattled Greece later this month could put the opposition anti-austerity party Syriza in power, jeopardizing the country’s economic reforms mandated by the international financial rescue, analysts said. Japan’s Nikkei led an Asian share slump following painful losses in New York and Europe.

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