After opening with a loss of 379 points at 11,316.24, the 30-share index BSE Sensex continued its losing streak on Wednesday (Oct 08) due to global financial crisis. 

Moreover, the BSE Sensex touched an all time low of 10,740.76. All segments suffered a severe hammering. 

Finally, the BSE Sensex closed the day after making a loss of 366.88 points at 11,328.36. It also hit a high of 11,405.73 and a low of 10,740.76. Meanwhile, NSE Nifty lost 92.95 points at 3,513.65 after touching a high of 3,604.40 and a low of 3,329.45.

While commenting on the market condition, Alex Mathew, head - research centre, Geojit Financial Services said, “We had seen highly volatile movements at one point even thought that the indices may test 10% circuit, but equities recovered smartly after hitting the key support at 3,329 levels. The market participants closed part of their short positions ahead of dashara holidays, and participants are also watching closely the possibility of signing the nuke deal this week which also helped the sentiment.”

Mr. Mathew said, “It is too early to believe that the markets have bottomed out, but it is very close to oversold territories. 3,320 and 3,113 can act as major support levels.”

“US Federal Reserve and European Central Banks and other National Banks have reduced the CRR by 0.5% which will bring liquidity to the financial system. More CRR cuts are expected in coming days,” he added.

Mr. P. K. Agarwal, president – research, Bonanza Portfolio said that depressing statements by Fed chief on US financial system had harsh impact on worldwide indices. 

Nikkei, Hang Sang etc touched their multi-year lows, while Nifty touched a new 2 year low of 3,329. 

But, stock markets staged some recovery, and Nifty managed to close the day above 3500 at 3,515. 

“Weakness was seen in Suzlon, BPCL, Wipro, Zee, Capital Goods, IT etc. To further support the markets, US Fed cut rates by 50 bps, after Indian markets closed. This was followed by Central banks of EU, England, China, Sweden, Switzerland etc. who also cut rates,” he said.

“However, Bank of Japan refused any rate cut. Tomorrow markets are closed on account of Dushera festival. On Friday markets are likely to be range-bound with resistance near 3,650 and support near 3,440 levels,`` he added.