Sensex ends 432 points down on Europe woes, China rate fears
12 Nov 2010
Bears attacked on bulls and took the complete control of Dalal Street on Friday. The sell-off by foreign investors on rate hike fears in China, payment default by Dubai group, eurozone worries and disappointing industrial production data shook the markets. The benchmark Nifty closed well below the 6100 level and the Sensex shed more than 430 points - one of the big sell-off in last few months.
Jai Bala, chief market technician at cashthechaos.com said the technical charts look like eye candy for the bears right now. ''One should expect a good correction coming into equity markets across emerging markets including the Nifty,'' he pointed out.
China's Shanghai led the sell-off across globe today, on the back fears that the country may consider tightening measures soon to control rising inflation. The Index crashed 5.16% to settle at 2,985.44. Among other Asian markets, Hang Seng, Jakarta, Nikkei, Straits Times and Taiwan Weighted fell 1.2-2%.
Even there were fears that Ireland may need a bailout just like Greece. But European markets showed smart recovery at the time of closing of Indian equities, after huge sell-off in initial trade (were down 1-2%); France's CAC, Germany's DAX and Britain's FTSE were trading 0.3-0.7%. US index futures also recovered a bit; Dow Jones and Nasdaq futures were down 0.3-0.5%.
Christopher Palmer of Gartmore Investment Management said that right now all attention on the outcome of G20 and dollar index. According to him, there are concerns over Ireland and China. However, there is a sigh of relief as there is no reason to worry about the US markets.
Even commodities like base metals, crude oil, gold were caught in bloodbath. China Copper plunged 4.4% in afternoon trade. Crude oil was trading at USD 86.26 a barrel, down USD 1.55.
