Sensex closes 371 points down, hits new 2011 low

3:30 pm: The Sensex hit a new 2011 low, but recovered to close 371 points lower at 17,321. The Nifty closed at 5,224, down 108 points.NMDC surged by 6 percent in the last few minutes of the trading session to close at Rs 254 after news came in that the Supreme Court had allowed the company to mine one million metric tonnes of iron ore from its Bellary mines. Hindalco also jumped into positive territory, pocketing a one percent gain.The biggest Sensex losers were Reliance Infra and Reliance Communications, losing 8 percent and 7 percent, respectively.

3:15 pm: Market breadth is improving: one stock is gaining for every eight shares declining, according to NSE data. The Sensex has recovered 306 points from the day’s low of 16,990 and is trading at 17,296. The Nifty is trading at 5,213, down by 118 points.

2:50 pm: Some large-cap stocks have started to recover. HLL is at Rs 318, the day’s high, although it is still down by 0.38 percent.L&T, 0.37 percent lower, is also at the day’s high of Rs 1,642. SBI is one percent lower at Rs 2,234. Sensex is 387 points down at 17,306. Nifty is at 5,207, 124 points down.

2:25 pm: Large-cap metals stocks continue to fall even as the Sensex trims losses to 465 points. The benchmark index is trading at 17,234. Sterlite drops 9 percent, Tata Steel declines 5 percent and Jindal Steel surrenders 3.25 percent.

2:10 pm: BPCL, ONGC and Cipla are gainers, add between 0.5 percent and 2 percent. Sensex has recouped some losses, is down by 478 points at 17,214. Nifty is at 5,185.

1:45 pm: Sensex still 500 points lower at 17,187. Nifty is 160 points down at 5,174. European markets trading two percent lower. Oil is at $85 a barrel. ONGC, Cipla are the only gainers among Sensex stocks.

1:27 pm: The Sensex rebounds slightly, is now down 457 points at 17,235. BSE IT index is the biggest loser among indices, followed by the realty and metals indices. Infosys is trading at Rs 2,590, after falling to the day’s low of Rs 2,525.

1:10 pm: The Sensex and Nifty are 500 points and 152 points lower, respectively. The Sensex is at 17,200. HDFC, Exide and Maruti are trading around today’s highs. However, BHEL, at Rs 1710, is still around the day’s low.

Firstpost’s editors R. Jagannathan and Venky Vembu talk about why global markets are falling, how it all began and whether or what exactly the larger implications and effects on the Indian market and economy could be.

12:53 pm: An estimated Rs 2,50,000 crore was wiped off from total investors’ wealth, measured in terms of the combined value of all listed stocks, in about three-and-a-half hours of trade.

12:50 pm: RCom is the biggest loser among Sensex stocks, down nearly 8 percent to Rs 91.6. Sterlite is the biggest loser on the Nifty. ONGC and BPCL are the only two stocks from the Nifty in positive territory.

12:32 pm: India’s Volatility Index (VIX) – a gauge of market volatility – surges 22 percent to 25.87. Sensex rebounds slightly, down 560 points at 17,123.$4.4 trillion wiped out from global equity markets, reports Bloomberg.

12:25 pm: Sensex nosedives 667 points to 17,025. Nifty 200 points lower at 2,159.

12:15 pm: Selling pressure intensifies – the Sensex is down more than 600 points at 17,081. Nifty sliding closer to 5,100 mark. Tech stocks struggling: Infosys and TCS are 6 percent down, while HCL Tech is 7 percent lower. Wipro is 4 percent lower.

12:05 pm: Mid-cap index loses 3 percent. Suzlon down by 7.5 percent, India Cements sinks 7 percent. Sensex losses pile up, trading 570 points lower at 17,120. The rupee, meanwhile, is 0.6 percent up at 44.78.

11.40 am: Sensex sheds 562 points, falls to 17,130. Nifty at 52-week low of 5,163. Infosys loses 5.5 percent, trading at Rs 2560.

11.20 am: NDTV hits all-time low of Rs 55. Reliance at Rs 789, its lowest level since May 2009. Tata Motors slips to Rs 881, its lowest level in nearly 12 months. Sensex is 460 points lower at 17,231, while the Nifty is just below the 5,200 level.

11:08 am: Sensex sinks to 17,214 – 479 points down.Nifty hits low of the day – 5,180.

11:00 am: Sterlite at Rs 142 is the biggest loser in the Sensex, giving up 6 percent. Market breadth remains poor– for every 15 shares declining, one share is gaining. Sensex is at 17,273, while the Nifty is at 5,199.

10:40 am: Sensex at 13-month low of 17,334, down by 359 points. Infosys plunges to 2-year low of Rs 2,600. Nifty at 5,200.

**10:21 am:**Nifty is at 5,220, its high of the day. CNX IT is the biggest loser among indices, giving up 3.2%. Sensex at 17,326, down by 366 points.

10:05 am: HPCL, BPCL, ONGC gain as crude oil falls to around $86 a barrel. ONGC is the only stock in the Sensex that is in positive territory (0.5%). Sensex slips further to 17247, Nifty at 5,208.

9:55 am: IT stocks slump. TCS slips 5% to Rs 1,045. Sensex at 17,265, down 427 points, Nifty at 5,197, lower by 134 points.

9:31 am: Reliance Industries shares fall below Rs 800. Sterlite and many other stocks hit 52-week lows. Sensex at 17,273, still down by 420 points.

The Bombay Stock Exchange benchmark Sensex plunged by 467 points in early trade on heavy selling by funds and investors in line with melting global markets amid worries over the US economy and the European debt crisis.

The 30-share Sensex, which had lost nearly 620 points in the previous three straight sessions, tanked another 466.78 points to trade at 17,226.40 points in the first few minutes of trade.

All the sectoral indices, led by realty, capital goods and banking, were in the negative zone with losses up to 3.73 percent.

The wide-based National Stock Exchange Nifty index dipped below crucial 5,200 level by losing 147.30 points to trade at 5,184.50 points.

Brokers said sentiments on the domestic boures remained extremely bearish after Asian stock markets plummets nearly 5 percent following overnight losses on the US market on fears the American economy is sliding back toward recession.

In addition, rising food inflation and fears of hike in interest rates were dampening factor, they said. Bucking the trend, stocks of state-run oil marketing companies were trading in positive zone as fall in global crude oil prices would reduce their subsidy burden.

The Dow and the S&P tumbled more than 4 percent on Thursday and the Nasdaq lost 5 percent on fear the United States is staring at another recession and that Europe’s sovereign debt crisis is swallowing two of its largest economies.

The Dow Jones industrial average was down 512.46 points, or 4.31 percent, at 11,383.98. The Standard & Poor’s 500 Index fell 60.21 points, or 4.78 percent, at 1,200.13. The Nasdaq Composite Index lost 136.68 points, or 5.08 percent, at 2,556.39.

Some 13.92 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq, the highest since June 25, 2010, and well above the daily average of around 7.48 billion.

Tokyo shares plunged 4.09 per cent in early trade today, following a sharp selloff on US and European markets amid worries over the American economy and the European debt crisis.

The Nikkei index at the Tokyo Stock Exchange dropped 395.09 points in eight minutes to stand at 9,264.09, before the initial sharp plunge stopped.

The broader Topix index of all first section shares traded 3.50 per cent or 28.93 points lower at 797.43, off the earlier low of 794.16.