Nifty ends below 4000 on negative global cues; Realty dip 7 per cent

26 September 2008

It was a savage correction in the markets led by negative global cues; bears took complete control over bulls and pushed the Nifty below psychological level of 4000. Benchmark indices got butchered by heavy sell off in heavyweights like Reliance Industries, ICICI Bank, Infosys, L&T, HDFC, HDFC Bank, SBI, ONGC, BHEL, NTPC and Reliance Communication.

Realty, metal, banking, capital goods, power, technology, auto, oil and telecom stocks took huge beating on the bourses, especially realty stocks have seen a big chink.

Global cues have played a key role in today's session again. Asian and European shares have beaten badly on uncertainties over USD 700 billion bailout package for US financial sector.

Investment guru, Marc Faber is however not too convinced about the bailout package for Wall Street. He said it is bound to fail. "There is very little transparency. But looking at the size of the US credit, equities, and housing market, and then looking at the size of the credit default swap market which is around USD 62 trillion now and worldwide derivative market which is now USD 1,300 trillion, I very much doubt that USD 700 billion will make any difference at all. In fact, I think it's a bad proposal in the sense that it will distort market pricing."

The Nifty closed down by 137 points at 3,973 and the Sensex fell 485 points to 13,061, (provisional).

On the global front, Asian and European markets were very weak as uncertainties continue over USD 700 billion bailout plan for US financial sector.