Nifty slips over 2%, breaches 4900 on Dubai's debt concerns

RELATED NEWS Dubai struggles to assuage debt fear Global mkts panic on Dubai's debt rescheduling Dubai seeks debt delay, some units cut to junk Dubai debt worry stirs cautious investors Dubai Inc may face shakeup after debt standstill ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

The Nifty drifted sharply lower in the opening trade and continued yesterday's sharp sell-off on the back of Dubai's debt concerns. Dubai accumulated USD 80 billion of debt by expanding in banking, real estate and transportation. Shares of Indian companies, which have exposure to Dubai, were seeing huge selling pressure.

At 9:56 am, the Nifty lost 110 points to 4,895 and the Sensex fell 335 points to 16,512. About 54 shares advanced while 713 shares declined on the NSE. The CNX Midcap declined 162 points to 6,979.   

Among the frontliners, DLF, Unitech, Suzlon, ABB, L&T, Jaiprakash Associates, Tata Steel, SBI, ICICI Bank, Sterlite, JSPL, Hindalco, Reliance Infrastructure and, Reliance Industries were biggest losers in early trade.

Siemens tumbled 7% post disappointing set of results.

However, Suzlon Energy was up 1%, as its arm REpower won order for up to 954 MW

Midcap Space:

Punj Lloyd fell 4%. Nagarjuna Construction was down 7%

HDIL, Orbit Corp, IVR Prime, Parsvnath, Dena Bank and UCO Bank slipped 5-6%.

Global cues:

Asian markets were trading sharply lower. Hang Seng was down 3.15%, Kospi down 2.8%, Taiwan down 2%, Nikkei down 1.8% and Shanghai down 1%. SGX Nifty was down 1.2%.

Global markets are in panic mode on concerns about Dubai's debt rescheduling. The Government of Dubai confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier today.

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