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Rediff.com  » Business » Sensex slumps 350 points, US shutdown fears loom

Sensex slumps 350 points, US shutdown fears loom

Last updated on: September 30, 2013 16:13 IST

Sensex slumps 350 points, US shutdown fears loom

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Tulemino Antao in Mumbai

Markets ended nearly 2% lower on worries over a probable US government shut down weighed on investor sentiment.

The 30-share Sensex ended down 347 points or 1.8% at 19,380 and the 50-share Nifty ended down 98 points at 5,735.

However, for the month of September markets gained 4%, posting its highest monthly gain since November 2012.

A political faceoff in the US over its government’s proposal to raise country's debt ceiling is expected to keep stock investors world-wide, including in India, on the edge in the days ahead.

Economists and analysts said failure to increase the debt limit by October would result in the US defaulting on its loans, which could potentially damage sentiment in global financial markets.

The rupee pared losses banks sold dollar for their custodial clients which was trading at 62.60/ dollar at 3:50pm, after hitting day’s low of 62.99/$.

In Asia, Nikkei slumped 2% while the Hang Seng and Straits Times were down over 1% each.

Howeever, China's Shanghai Composite was up 0.7%.

European shares were also trading lower amid political tension in Italy coupled with the uS debt ceiling crisis.

The CAC-40, DAX and FTSE-100 were down over 1% each.

The BSE Capital Goods index was the top loser among the sectoral indices down nearly 3% followed by Bankex, Metal, Realty indices all down over 2% each.

ITC, Reliance Industries and L&T along with financials HDFC, ICICI Bank and HDFC Bank contributed most to the Sensex decline.

Bharti Airtel ended 2% down, extending its Friday’s 3% fall, on reports that the telecom regulatory may impose an additional penalty on the company for offering 3G services in the circles where it does not have spectrum.

Other losers include, TCS, Tata Motors, ONGC and Tata Steel.

Among other shares, ING Vysya Bank surged 5.1% to end at Rs 536 on BSE on reports that the promoter is planning to sell its entire stake in the private sector bank.

Shares of Financial Technologies India (FTIL) ended 6.4% lower at Rs 141 extending it' Friday’s fall, on reports that the government is set to launch an inquiry against the Financial Technologies Group based on the findings of multiple agencies and regulators investigating National Spot Exchange Ltd (NSEL).

MCX ended down 5% at Rs 382 after MSCI said the stock will be excluded from the global small-cap indices with effect from October 2, 2013.

Electrosteel Castings ended up 6.8% at Rs 13.14 after the company announced that its debt restructuring programme to the tune of Rs 6,181 crore has been approved by CDR EG under the Corporate Debt Restructuring programme with March 1, 2013 as the cut-off date.


Image: BSE building.
Photographs: Hitesh Harisinghani/Rediff.com

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