Indices decline further as global weakness intensifies

19 October 2005

Heavy selling in equity markets across the globe affected the Indian bourses also and the frontline indices continued their week trend of last 2 weeks. Further decline in the value of the Rupee against the US Dollar added to weakness.

The US markets had closed on a weak note yesterday and Asian markets were in a sea of red today. Most Asian indices lost between 1 and 2 per cent and a few of them lost more than 2 per cent in today's trade. Worries about rising global interest rates and its negative impact on economic growth are unnerving stock markets across the world.

The indices opened with a negative gap and the indices had lost more than one-and-a-half per cent each within half an hour. Reports of heavy purchases by FII's in the futures segment yesterday and a recovery in Rupee value helped the indices to stage a partial recovery by noon.

More selling emerged by early afternoon and the indices were on a downward spiral for the rest of the day. The Sensex was trading with losses of over 190 points by late afternoon before a last minute recovery helped the indices to recover.

ONGC was among the major index losers. The stock witnessed a major sell off in afternoon trades and declined close to 5 per cent by late afternoon. The stock recovered in the last half hour and closed the day with losses of over three per cent.