Indices decline further as global weakness intensifies

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.