indian stock market closed august 19 2011

indian stock market closed august 19 2011 ; Mayhem in global stock markets amid fears of recession in major economies pulled down the BSE Sensex to below 16k level after nearly 15 months on sustained pull-out by foreign funds, although it recovered a little to close at 16,141.67, still down by 328 points.



The meltdown in stock markets has wiped off more than Rs 2 lakh crore of investor wealth in just two days.



Concerns over euro-zone debt troubles and their impact on banks, weak economic data in the US and other parts of the world and reports that America and Europe were dangerously close to recession battered investor sentiment globally.



This scenario, coupled with high inflation and rising interest rates back home, hit Indian equities hard.



Against this backdrop, Finance Minister Pranab Mukherjee discussed macro-economic situation with RBI Governor D Subbarao and Prime Minister's Economic Advisory Council Chairman C Rangarajan.



"As the advanced economies grapple with their problems, India is better positioned than most other nations to meet its problems," the Finance Ministry said in a statement.



Barring realty, which had been beaten down recently, all other 12 sectoral indices ended down between 4.41 per cent and 0.39 per cent.



The Bombay Stock Exchange 30-share index, Sensex, resumed lower and remained in the negative terrain throughout the day and closed at 16,141.67, down 328.12 points or 1.99 per cent, over its 371 points or 2.20 per cent loss yesterday.



It logged a low of 15,987.77 -- level not seen since May 25, 2010 when it had touched 15,960.15.



Similarly, the NSE 50-issue Nifty slumped 98.50 points or 1.99 per cent to 4,845.65. It registered a low of 4,796.10 during intra-day trade.



"Worsening global cues have spoilt investor sentiment. Rate hike fears have also rattled investors. In the near-term, global cues will dictate the market trend. However, one can see some technical bounce back after such huge fall," said Geojit BNP Paribas Research Head Alex Mathews.



According to reports yesterday, Morgan Stanley warned that the US and Europe are dangerously close to recession amid a rise in jobless claims in America, igniting fresh fears of turmoil in the world economy. Morgan Stanley also cut its global GDP growth rate, which upset the overall sentiment.



Asian stocks closed sharply lower, with key indices from China, Hong Kong, Japan, Singapore, South Korea and Taiwan losing between 0.98 per cent and 6.22 per cent.



The Dow Jones Industrial Average and the Nasdaq Composite Index crashed by 3.68 per cent and 5.22 per cent yesterday.



European markets too showed a sharply lower trend in this afternoon. The CAC was down by 2.92 per cent, the DAX by 2.79 per cent and the FTSE by 2.08 per cent.



Back home, FIIs remained net sellers and pulled out Rs 488.67 crore yesterday as per provisional data. Between August 12 and 17, in three sessions, they have withdrawn over Rs 1,000 crore.



The IT index suffered a heavy blow after the downslide in their ADRs as the Wall Street yesterday recorded its biggest drop since US downgrade. Capital goods, teck, banking and consumer durable stocks too attracted heavy profit-booking.



In all, 21 of the 30 index-scrips closed with gains, while others ended with losses.



Infosys tumbled 5.79 per cent and was the top loser from the Sensex pack, followed by Tata Motors (5.28 pc), L&T (4.95 pc), BHEL (4.63 pc), ICICI Bank (3.65 pc), TCS (3.36 pc), Sterlite Ind (2.53 pc), Sun Pharma (2.29 pc), Wipro (2.29 pc), ITC (2.21 pc), Bharti (2.11 pc), Jindal Steel (1.98 pc), SBI (1.81 pc) and RIL (1.18 pc).



Intra-day, Cipla, Hindalco, ICICI Bank, Infosys, Jindal Steel, RIL, SBI, Sterlite Ind, Tata Motor, Tata Power, Tata Steel and Wipro touched 52-week lows.



Similarly, among sectoral indices and investment segments such as BSE-Midcap, Smallcap, Metals, Oil & Gas, PSU, Power, Bankex, Capital Goods, IT, BSE-200, BSE-200, BSE-500, Dollex-30, Dollex-100, Dollex-200, registered new 52-week lows during the intra-day trade.



The total market breadth at BSE remained negative as 2,083 stocks ended in the red, while 773 finished in the green. The total turnover rose to Rs 2,763.78 crore from Rs 2,241.64 crore yesterday