Markets open sharply lower; banks, metals worst hit
Key indices opened sharply lower on Wednesday tracking the weakness across global markets after the US bank rescue plan disappointed. All
sectoral indices were trading in the negative terrain.
Exchange’s 30-share Sensex fell 165 points to 9462. National Stock Exchange’s benchmark Nifty shed 51 points or 1.75 per cent to 2883 from its previous close.
US stocks tumbled more than 4 percent on Tuesday as investors pummeled bank shares on concerns that a reworked plan to shore up the financial sector may not be enough to thaw credit markets and alleviate the deepening recession.
Treasury Secretary Timothy Geithner warned that it will “take time” for the administration’s strategy to bear fruit. Geithner pledged government financing for as much as $2 trillion of efforts to spur new lending and address banks’ toxic assets, seeking to end the credit crunch hobbling the economy.