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Journalism of Courage
With the Union Budget just two days away,Dalal Street joined a global sell-off and plunged to a three-month low on concern Italys elections may reignite Europes debt crisis. The S&P BSE Sensex closed with a loss of 316.55 points,or 1.64 per cent,at 19,015.14,its lowest close since November 27,2012. The 50-issue CNX Nifty of the NSE also plunged by 93.40 points or 1.60 per cent to end below 5,800-mark at a three-month low of 5,761.35.
Indian stocks tracked a sell-off in global equities after Italys inconclusive election results revived Euro zone concerns,sending the MSCI Asia-Pacific index outside Japan down 1.2 per cent. Italys FTSE MIB index fell 4.4 per cent,The Dow Jones Industrial Average slumped 216.40 points,or 1.5 per cent,to 13784.17,its biggest one-day point and percentage drop since November 7. Germanys DAX fell 1.75 per cent,French CAC slumped by 2.12 per cent,Nikkei of Tokyo by 2.26 per cent,Hong Kong by 1.32 per cent and Singapore STI by 1.05 per cent.
In a sign of rising market concerns,the CBOE Market Volatility Index,the fear gauge known as the VIX,soared 34 per cent to its highest level this year. The last time the VIX rose more than 30 per cent in a day was during 2011s debt-ceiling debate. Fears are that a split parliament will make it harder for one group to push through their plans to revive the economy,and that may stall Italys process of cutting its public debt levels. Banks were the biggest losers on the stock markets,with shares in major banks across Europe down more than 4 per cent.
JET FALLS: Shares of Jet Airways tanked more than 11 per cent amid concerns whether its stake-sale deal with Abu-Dhabi based carrier Etihad would materialise. The scrip settled at Rs 448.45,down 11.12 per cent on BSE.
There were also reports that Etihad was seeking to revise a proposed deal with the Indian carrier.
Railway-related firms take a beating on D St
Share price of companies linked to Indian Railways fell sharply by up to 16 per cent on Tuesday after the rail minister announced a Rail Budget that had a touch of austerity with the gross budgetary support rising by only 8.3 per cent for the financial year 2013-14 as against a 20 per cent hike in the gross budgetary support in the Rail Budget 2012-13. ENS
