The 30-share index BSE Sensex lost more than 200 points to drop below the 16K mark for the second time during the existing week.

Bourses saw huge selling pressure after pessimistic news from Europe and the US resulted in a worldwide sell off in risk assets.

Indian currency hit a new low, further appending pressure on equities.

At 09:30 a. m., the broad-based Nifty index remained 60 points down at 4,810.

Worldwide stock markets came under selling pressure after ratings firm Moody's demoted 16 Spanish banking institutions citing a feeble financial system and the administration's reduced ability to support disturbed lenders.

Asian bourses ruled with deep cuts, with stock markets in South Korea (-2.65%) and Japan (-2.45%) heading the losses.

Facts & figures from the US showed that manufacturing constricted during the mid-Atlantic area for the first time in the last 8 month period.

The Dow Jones index lost 156 points to trade at 12,442.

Public sector lender SBI (0.38%) remained the major loser on Nifty gainer. The stock ruled higher prior to reporting its fourth quarterly income today.

State run oil marketing company BPCL (0.18%) stayed the other gainer.

48 out of the 50 stocks remained in the negative zone on the Nifty.

Auto stocks comprising Maruti Suzuki (-2.7%) and Tata Motors (-2.6%) remained the losers.

The overall breadth of the stock market breadth was extremely pathetic with only 12% stocks managing to gain on the broader BSE 500 index.

Independent analyst Sarvendra Srivastava stated, “The fact that the bounce did not last for even two sessions, indicates medium term targets around 4,000-4,200.