Panic on Bernanke remark,Sensex below 11k

Markets opened sharply lower on Wednesday in line with other global markets following distressing comments from the US Federal Reserve Chairm


an Ben Bernanke. He cautioned that downside risks to economic growth have worsened and signaled that policy makers are ready to lower interest rates as the credit freeze poses an escalating danger to the economy. He added that the world financial system is under 'extraordinary stress' and history shows that severe instability can take a heavy toll on the broader economy if left unchecked.

At 10:30 am, Bombay Stock Exchange’ Sensex broke crucial 11,000 level and was at day's low at 10,998.05, down 697.19 points or 5.96 per cent. It touched a low of 11,008.20 in opening trade. The benchmark heavyweights like Reliance Industries and Infosys Technologies were down over 6 per cent.

National Stock Exchange’s Nifty was at 3397.60, down 209 points or 5.79 per cent. The broader index broke two important supports of 3500 and 3400 in trade so far.

BSE Midcap Index was down 5.37 per cent and BSE Smallcap index fell 4.29 per cent.

Sterlite Industries (-11.99%), Satyam Computer Services (-9.78%), TCS (-8.87%), Tata Power (-7.92%) and Jaiprakash Associates (-7.13%) were the major Sensex losers.

“Markets are likely to move towards the 11K mark in the Sensex. There are no meaningful supports in the vicinity, except the round figures. Banking stocks have given renewed bearish signals. Cut your losses or book profits with a clinical bent of mind. Buy Puts in the Bank Nifty. The day the rates that bank charge each other for three months loan start declining in Europe, that may be the time to start looking for a temporary bottom in the markets,” said Anagram Stock Broking note.

Extending the global rout, Asian markets declined sending Hong Kong's Hang Seng below 16,000 for the first time in two years. The Nikkei slumped 7.10 per cent, Straits Times plunged 5 per cent, and Kospi lost 5.09 per cent.

Market breadth was extremely weak on the BSE with 1570 losers and 172 gainers.