Global liquidity fears pummel markets again

There was no end to the market worries as the FTSE-100 index dipped 2.3 per cent on Friday, wiping out this year’s gain. Dow Jones which closed 2.83 per cent down on Thursday, fell another 1 per cent in the Friday opening session. The MSCI main world equity index was down 1.6 per cent on top of a 2 per cent fall on Thursday.

The BSE Sensex lost 231.90 points or 1.54 per cent at 14,868.25, off the day’s low level. It opened with a sharp 466-point downward gap at 14,631.15 and slumped further to touch a low of 14,570.89. Bargain hunters in the IT space helped it recover partially. “India will move along with other global markets. We can’t do anything. We’re helpless,” said BSE dealer Pawan Dharnidharka.

World stocks have shed over 7 per cent since they hit record highs only a month ago. Investors rushed to buy safe-haven government bonds, unwind yen-financed carry trades and moved to scale back expectations for interest rate hikes by some major central banks this year.

FIIs pull out $369 mn in Aug

MUMBAI: Foreign institutional investors are pulling out funds from the markets hit by sub-prime mortgage defaults. FIIs have been net sellers in the domestic market (till August 10) to the tune of

Rs 1,492.70 crore or $368.90 million in India. This outflow has come after the inflow of over $5.8 billion in July. On the other hand, MFs have pumped in Rs 567.10 crore in equity till August 9.