Sensex closes 277 pts lower on Europe woes; TCS dives 8%
18 Oct 2011
The BSE Sensex slid 1.6% at close on Tuesday led by global fall post German FM Wolfgang Schaeuble's statement. The German FM said that European governments won't resolve the crisis at EU meeting scheduled for October 23.
Among the largecaps, TCS and HCL Tech got butchered quite badly. The 30-share BSE Sensex fell 276.80 points, to close at 16,748.29 on broadbased selling. The 50-share NSE Nifty dropped 80.75 points, to end at 5,037.50 led by fall in 39 stocks.
David Buick, partner at BGC tells CNBC-TV18 that the European Union's inability to resolve the crisis will disappoint markets further. "It's the lack of clarity from European politicians that is making everybody so nervous," he explains. He adds that a write down of debt on the books of European banks - a proverbial haircut - could help the situation.
European markets like France' CAC and Britain's FTSE fell 1% each; Germany's DAX lost just 0.5%. Asian markets closed 1.4-2% lower while only Hang Seng plunged more than 4%.
On the home turf, Nitin Raheja of Rada Advisors says that though the earnings are not too bad, it is likely to drag the market towards the lower end of the trading range at 4,800 than the upside at 5200.
TCS and HCL Tech took huge beating as investors disappointed with their quarterly performance; former one fell nearly 8% and later one lost over 8.5%.