Sensex plummets over 3%; banks, realty, metals crash

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs BSE | NSE 10/02/12

At 13:12 hours IST, continuous sell-off across all the sectors and global meltdown since yesterday on concerns about Dubai's debt crisis hammered Dalal Street. The Sensex crashed over 600 points and the Nifty about 200 points. Banking, realty, metal and capital goods were the major losers. Shares of Indian companies exposed to Dubai were witnessing heavy selling pressure. The broader indices slipped 4%, as about 65 shares advanced while 1,208 shares declined on the NSE.

Asian markets cracked further; Hang Seng and Kospi tumbled 4.6% each. While Nikkei and Taiwan Weighted fell 3.2% each. Shanghai and Jakarta were down 2.4-2.8%. The US Dow futures slipped 3%, which is indicating sharp cut in the US markets today.

According to Reuters, the Emirate said on Wednesday it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree a standstill on billions of dollars of debt as a first step towards restructuring. Dubai World has USD 59 billion of liabilities, representing a large part of Dubai's total debt of USD 80 billion.

However, the markets were not getting any sigh of relief from the talks of Indian Trade Ministry. Trade Ministry said Dubai debt crisis was unlikely to hurt Indian Economy. He also said that he wsa confident of a recovery in the Indian real estate sector.

The RBI's (Reserve Bank of India) Deputy Governor has asked banks to report their exposure to Dubai World. He said possibility of Indian banks lending to Dubai World was low.

The Sensex plummeted 643 points to 16,211 and the Nifty fell 197 points to 4,807.

Omaxe lost 8.5%, as its Chairman said the company was likely to exit 2 real estate projects in Dubai and would soon decide on exiting Dubai Realty Projects. The company has planned Rs 2,850 crore investment for Dubai Realty Projects. It has paid Rs 50 crore to Nakheel as first installment; Chairman said would seek Rs 50 crore refund from Nakheel if company exits Dubai Project.

On the sectoral front, BSE Bank, Metal and Realty indices declined 5-6%. Capital Goods, Oil & Gas, IT, TECk, Auto, Power and FMCG indices fell 2-4%.

In the largecaps, Jaiprakash Associates, DLF, ICICI Bank, L&T, Sterlite Industries, Siemens and Unitech tumbled 5-8%. However, Ranbaxy Labs was the only gainer on the Nifty with 2% gain.

In the midcap space, KGN Industries jumped 5% and Jain Irrigation was up 2.48%. However, BF Utilities, Aban Offshore, REI Six Ten, Jindal Saw and IVRCL Infrastructure slipped 8.6-10%.

In the smallcap space, JMD Telefilms rose 4.95% and ABG Infralogistics was up 1.86%. Page Industries, Surana Industries and Dynamatic Tech were up 0.5-1%. However, Orbit Corporation, Binani Industries, Tube Investment, JSW Holdings and TV TodayNetwork lost 10-14%.

Crude slipped below $ 75 a barrel, was down 5%. Gold also slipped 2.5%.

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