According to reports, BSE benchmark Sensex closed down 328 points at 16,142, the 50-share NSE Nifty dropped 98.5 points to close down at 4,845.65 and Sensex lost 698 points with IT taking the major portion. The shares affected were capital goods, banking and metal companies.

Also, the whole issue is said to have began with news that major European banks were challenged with short term fund crisis which led to 5% cut in NASDAQ, which induced mayhem in India and Asia.

Hence at one point, Sensex had gone over the 16000 mark to go down as low as 15,987.77, and 50-share Nifty experienced an intraday low of 4,796.10.

The European market was trading close to two-year low, as France's CAC, Germany's DAX and Britain's FTSE fell by 2.5-4% at the closing of Indian equities and among the Asian markets; Hang Seng, Straits Times, Nikkei and Taiwan closed down at 2.5-3.5% with Kospi as the biggest loser among ‘global indices’, dropping more than 6%.

Moreover, Richard Ross, the global technical strategist at Auerbach Grayson & Company, anticipates seeing a more ‘downside’ of the top emerging markets, as he stated: “Investors should remain defensive and conservative. They should keep some cash on the sidelines for a better buying opportunity, perhaps at the end of the summer, but at much lower levels in terms of price".