Business | Markets

Indian shares decline 4.05% on bailout fears

Indian shares fell 4.05 per cent on Friday to their lowest close in 18 months on rising concerns that Washington's $700 billion bailout package may not be sufficient to prevent economies from sliding into recession.

  • Reuters
  • Published: 21:46 October 3, 2008
  • Gulf News

New Delhi: Indian shares fell 4.05 per cent on Friday to their lowest close in 18 months on rising concerns that Washington's $700 billion bailout package may not be sufficient to prevent economies from sliding into recession.

Index heavyweights Reliance Industries fell 7.7 per cent to its lowest in more than a year and ICICI Bank lost 8.5 per cent, with losers outpacing gainers almost 3:1 in the broader market.

World equities hit a fresh three-year low ahead of a vote for the massive bailout package in the US House of Representatives.

"The bailout package no doubt will have long-term repercussions, maybe in a period of three to nine months, but those who are already weak, you can not save them from falling apart," said Deven Choksey, CEO of K. R. Choksey Shares and Securities.

"Probably you would see more victims of the financial crisis. There are hedge funds which are winding up operations. They are closing their exposure in different markets including India. And, on the other hand, the buyer is not feeling comfortable with the onslaught. So things are going other way round."

The 30-share BSE index lost 529.35 points to end at 12,526.32, its lowest close since April 2, 2007, with 27 stocks falling. The index fell 4.4 per cent on the week.

More from Markets

  1. Single Gulf currency: Beyond political will

  2. Macro-economic woes dent outlook

  3. Saudi shares gain on US confidence, China growth

  4. Downtrend expected to reverse

All articles in Markets

More from Business

Gulf News
Popular in Markets
Popular in Business

More from Business

Business Editor's choice