The US Federal Reserve seeing
risk to the US economy in the coming period didn't augur well for the equity markets around the world, including Bombay Stock Exchange benchmark Sensex. The 30-share index suffered the biggest plunge in over 26 months, nosediving 704 points on heavy sell-offs.
HOW THE MARKETS FARED The Sensex, however, was only mirroring the trend in the global markets, with even the rupee falling to a 25-month low.
The 30-share BSE benchmark index tanked 704 points or 4.13 per cent to 16,361.15 - biggest one day dip after July 6, 2009 as Asian markets tanked and European markets opened lower by up to four per cent.
ANALYSIS: Stock market fall - It's the 'operation twist' effect Similarly, the broad-based NSE index Nifty melt down by 209.60, or 4.08 per cent to 4,923.65.
Funds pulled out of risky assets amid concerns of slowing global economy after the US Federal Reserve disappointed investors with its stimulus plan, while warning of
serious downside risks to growth amid severe euro zone debt crisis.
Back home, the rupee fell to fresh 2-year low against the US dollar to Rs 49.20 in intra-day trade - weakest since July 13, 2009.
Federal Reserve's downbeat outlook for US economy pulled down all the global markets. The central bank made it clear that it thinks a full economic recovery is "years away".
SPECIAL: Global economic crisis: How will India fare? Ongoing debt troubles in the euro zone nations and continuing depreciation of the rupee that makes imports costlier, only added to the woes.
The heaviest on Sensex -
Reliance Industries - fell 6.16 per cent, followed by the second-heaviest
Infosys by 3.28 per cent.
The Hong Kong's Heng Seng dropped 4.85 per cent, Japan's Nikkei by 2.07 per cent, Indonesia's index by 8.88 per cent.
Markets fell more than 3 per cent in Taiwan, Russia and Poland. The European indices, led by London' FTSE plunged 4.55 per cent, followed by Paris - 4.65 per cent - in early trade.
The selling pressure was so strong that even a
fall in food inflation to 8.84 per cent for week ended September 10, from 9.47 per cent in the previous week, failed to check the downfall.
- With inputs from agencies 
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