Andrew L Dcunha
Mumbai, Aug 19: Indian markets continued downward trend on global worries and closed to their lowest close in nearly 15 months. BSE Sensex slipped below 16,000 for the first time since May 2010 in the afternoon session to a low of 15,998 and then recovered from day's low in the last leg of the trade, and closed at 16,141, down 328 points. During the week, Sensex lost 698 points. The Nifty was at 4,845, down 99 points. The BSE IT Index crashed 6% and Capital Goods lost 4%.
As many as 132 companies declined to their all-time low levels in morning trade on the Bombay Stock Exchange today. Among the companies that witnessed all-time lows were telecom PSU MT, Anil Ambani group firm Reliance Communications, telecom equipment manufacturer GTL and Network 18 group firm TV18 Broadcast
The Nikkei Stock Average and Hong Kong’s Hang Seng indices declined almost 3% each and China’s Shanghai Composite plunged over 1%. Kospi was the biggest loser among global indices with falling over 6%. European markets too have followed suite and were trading lower, extending Thursday's losses, CAC 40 and DAX dipped 3% each and the FTSE was off almost 2%
The Indian rupee fell to a six-month low of Rs 46.1 per US dollar in early trade today on persistent demand for the American currency from banks and importers amid strengthening of the dollar in global markets and weak domestic equities.
Gold jumps to record high of Rs. 28,150
Gold has rallied to another all-time high as escalating concerns that the US and Europe are headed for recession spurred demand for the recognised safe haven. The precious metal is set for a seventh straight weekly advance, with the most active contract for December delivery reaching a record high of $1872.2 an ounce this morning. In India Gold climbed to an all-time high of Rs 28,150 per 10 grams in the national capital today, posting its biggest-ever single day gain of Rs 1,310 amid frantic buying triggered by robust demand in global market.
Oil prices fell on weak demand
Oil prices fell on Friday, extending the previous session's plunge, on renewed fears of weak demand following a slew of lacklustre data from the world's top oil consumer, the United States. Brent slipped to as low as $106.05, after breaking below the 200-day moving average to settle at $106.99. Prices dropped 70 cents to $106.29 at 07:15 am IST. The contract has slipped more than 9% this month, the worst since a 15% drop in May 2010. US crude slipped to as low as $80.66 a barrel and traded $1.31 a barrel lower at $81.07.
