After opening negatively at 12,178.17, down 417.57 points, the 30-share index BSE Sensex fell further to a two-year low of 12,153 on all-round selling by funds following refusal of the $700-billion plan by US House of Representatives.

In contrast, the National Stock Exchange (NSE) index Nifty lost 135 points at 3715 with all the heavy-weight stocks trading in negative zone.

A Delhi-based broker, Manoj Choraria said, “Deepening global financial crisis after rejection of the USD 700 billion bailout package by US House of Representatives mainly triggered all around selling on the Indian bourses.”

Major losers which dragged the Sensex down were ICICI Bank, SBI, Reliance Infra, HDFC bank, Infosys, Satyam Computers, BHEL and Larsen and Toubro (L&T).

Stock market analyst Vishwas Agarwal said that presently, the stock markets are in unsafe zone after the N-deal and bailout package was cleared in the US. 

Even after that there were no good signals in worldwide stock markets. Investors, traders and MF industry have lost confidence and faith in the stock markets, which is really important for any financial market. 

Mr. agarwal said that it is hard to forecast that how long the bearish trend in the stock market will continue.

He said, “We can expect a strong market only after the current dust settles down.”

“I still advise to stay away from the market, the only thing which pulls us to buy stock is depreciating value of the stock which is the not the only criteria to buy the stock,” Mr. Agarwal added.

He also said that investors as well as traders have to think about many things before buying the stocks, which have to be in favour, but currently none of the things are in favour.