Mumbai: Stock markets tanked in early morning trade today and sent the benchmark Sensex down by as much as 483 points to its lowest level in 13 months, amid concerns over the US economy moving towards recession.
Mirroring the overnight tremors in the US market, the Indian bourses opened on a weak note and the Sensex slumped within minutes by 483 points to as low as 17,210.26 points — its lowest level since June 14, 2010.
After recovering part of the early losses, the Sensex was trading 362.21 points down at 17330.97 points at 1025 hrs.
Similar losses were seen in another benchmark Nifty, which fell to its lowest level in about six months. The index was down 127.40 points at 5,203.15 points, after slumping to as low as 5,184.50 points — its lowest since February 11, 2011.
The 30-share Sensex has already lost nearly 620 points in the previous three sessions amid weak global cues and worries over financial crisis in the Europe and the US.
The US market recorded its worst fall since early 2009 yesterday amid fears that the world’s largest economy was heading towards another possible recession.
However, some analysts saw today’s fall as a buying opportunity and dismissed any panic-like situation.
“The uncertainity in the US and Euopean markets will bring in more money in emerging markets like India as the valuations are cheap here. (It’s) not a panic situation, and rather it is a buying oppertunity,” CNI Research’s CMD Kishor Ostwal said.