BSE Sensex is moving down and down as the world stock markets have started falling over the anticipation of another round of recession 2011 in the US market. The fear has gathered momentum after the US government recently raised their level of debt limit.
BSE sensex has dropped a massive 500 points in the morning and Nifty was struggling to hold the 5200 mark. Nifty was trading at 5100, down with almost 150 points from yesterday. Asian stock markets like Hang Seng market, Nikkei, Taiwan, Kospi and Straits are going down from 3 to 6 per cent. US stock markets plunged by 4-5% since yesterday.
In the Indian market, as the BSE index is sliding down, major stocks like Reliance Industries, ICICI Bank, ITC, SBI are all going down by 4-5%. For every one share rising on the National Stock exchange, it has been seen that 17 shares are going down.
Only the oil companies are gaining some value as the price of global crude oil prices have come down and touched $86 a barrel.
The sharp decline of the world markets added with a dropping Euro, pushed up the Indian Rupee five week high against the dollar. Dollar touched 44.85 Indian Rupee and this level was last touched on June 2010. This has showed the bond market moving upwards as India’s 10 year paper reached Rs. 96.55 against Rs 96 when it closed on Thursday.