Nifty Crashed Below 3000 Mark, Lowest Since July 2006

Author: Anurag Bhullar

The Indian markets are showing signs of extreme pressures created by the financial crisis in the global markets. With last week, the BSE Sensex plunged below the 10,000 mark now this time its Nifty that slipped below the 3,000 level on Thursday. It is the first time since July 2006 that Nifty crossed the barrier of 3000 points.

The markets on Thursday opened sharply lower and Nifty plunged by 134 points to 2.931 level in the morning session. On the other hand Sensex also dropped 450 points to 9,719 in the early trading at the Dalal Street.

BSE madcap and small cap indices on Thursday dropped between 2.5 percent to 3 percent whereas BSE metal, Tech and Bankex indices fall between 4 to 6 percent. The major stocks that dragged the markets in the red include Reliance Industries, ONGC, Bharti Airtel, TCS, NTPC, ICICI Bank, SBI, HDFC, Reliance Communications, Infosys and BHEL.

The Indian Rupee has depreciated against the US dollar and is creeping towards the 50 level. The crude oil prices is also crawling down and has declined 4.5 percent and gasoline prices is down by 7 percent. Crude oil is presently trading in the global oil market at a rate of $67 per barrel, its 16 months low.