The Sensex tumbled today (March 3) to close at 8427 after touching a low of 8390. The reasons were varied: extremely weak global cues, dismal domestic trade data, and consistent FII outflows.
Asian indices also ended lower by about 3%-4%.
European markets were down in their early trade. Britain’s FTSE 100 index fell below the 3,600 mark for the first time since the start of the Iraq war in 2003. Germany's DAX and France’s CAC-40 was also down.
U.S. stocks also slumped on Monday (March 2), with the Dow Jones Industrial Average and the S&P 500 to new 12-year lows after insurance major AIG reported a massive quarterly loss, heightening worries about the financial sector and the economy. Adding to the weakness was Warren Buffett's statement of the U.S. economy being in shambles in 2009. Big troubles for Britain’s HSBC added to global woes.
Despite the Indian market ending in the red on Monday, auto stocks were in demand on the back of good sales numbers. All the Sensex components ended in the red, barring M&M. The major laggards were, Reliance Infra, Tata Steel, ICICI Bank, RCom, JP Associates and TCS.
On Tuesday, it was banking, telecom, FMCG and oil & gas stocks that suffered heavy losses. However, the cement stocks recorded concrete gains on the back of pretty good dispatch numbers. Stocks like ACC, Grasim and JP Associates were the top gainers in the Sensex.