Japan quake, Saudi tensions drag Sensex 154 points down
11 Mar 2011
Indian equity benchmarks have seen more than 0.8% drop on Friday after an earthquake in Japan, weakened the sentiment further already affected by tensions of Middle East & North Africa. However, the market shrugged off the better-than-expected industrial output data.
An earthquake measuring 8.9 struck off the northeast coast of Japan on Friday, shaking buildings in the capital Tokyo. The quake triggered a 10-metre tsunami that swept away everything in its path, including houses, cars and farm buildings on fire.
The Nikkei 225 average closed down 1.7% at 10,254.43 points after the earthquake struck. Among other Asian markets - Hang Seng, Kospi and Straits Times went down 1-1.5%. Shanghai and Taiwan were down over 0.7%.
Tsunami warning has widened to include rest of Pacific coast, including Australia and South America, after massive earthquake in Japan. India Tsunami Centre says there are no local alerts yet in wake of Japanese quake.
Deven Choksey, KR Choksey Securities said that the crisis may not have a direct impact on Indian economy and business. However, the Japanese crisis may have a far reaching effect on Indian auto components company.
"Commodities may get affected as crude prices will come down. Sectors like insurance and auto will face disruptions," Choksey.
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