Sensex closes 224 points down; ICICI Bank pares 4%
01 November 2011
The BSE benchmark dropped for the second consecutive session on Tuesday, losing more than 200 points mirroring downtrend in European markets. Investors remain worried over the new EU deal, especially after the Greek prime minister raised concerns over it yesterday. The 30-share BSE Sensex fell 224.18 points or 1.27% to close at 17,480.83 led by sell-off in almost all sectors. The 50-share NSE Nifty slipped 68.65 points or 1.29%, to end at 5,257.95.
European markets saw drastic fall in today's trade after the Greek prime minister sought an unexpected referendum on the new EU aid deal. France's CAC and Germany's DAX plunged over 3.5%. Britain's FTSE lost over 2%.
The Greek prime minister said he needed wider political support for the fiscal measures and structural reforms required by international lenders, reviving concerns the country will default on its debt, which in turn will threaten bank earnings.
John Woods, managing director and chief investment strategist, Citi Private Bank speaking to CNBC-TV18 said that if Greek electorate reject the deal offered to them then it would have a negative impact on global risk markets including those in Asia.
Among others, Athex Composite tumbled 6%. IBEX Spain, Irish Overall Index and Portugal tanked over 3.5%. FTSE MIB Italy dropped 4.6%%.
On the home turf, about 23 shares out of Sensex 30 closed in the red. ICICI Bank was the biggest loser, falling nearly 4%.