Sensex plunges 350 pts to 2-month low, loses 42 p as global fears hit markets 

 MUMBAI: Global worries spooked markets on Thursday as the Sensex and the rupee fell to monthly lows, but gold gained ahead of the festive season.

The benchmark BSE Sensex plunged 350 points, or 1.3%, to 25,999, its lowest since August 13, after foreign investors sold stocks, prompted by a sell-off in the European markets.
The broader NSE Nifty ended down 115.80 points, or 1.47%, to ned at 7,748.20.
“Markets opened better on the back of closings of US markets with a strong recovery and positive domestic news flow on inflation and on the political front, but fresh weakness in world markets dragged sentiment,” said Shrikant Chouhan, head, technical research, Kotak Securities.
The rupee closed 42 paise down at an over seven-month low of 61.83 against the greenback on heavy capital outflows and a spike in demand for US dollars.
“Concerns rose after trade deficit widened in September. The trading range for the spot rupee is expected to be within 61.40 to 62.40,” said Pramit Brahmbhatt, CEO, Veracity Group.
Bullion, meanwhile, rose as investors sought safe-haven assets with gold prices rising further by ` 190 to ` 27,840 per 10 grams in the national capital on sustained buying by jewellers and retailers a week before Diwali. Silver also recovered by`100 to ` 38,900 per kg on increased offtake by industrial units and coin makers.
Global markets shaved off $672 billion on Wednesday amid concerns that the European economy was slowing and a sharp drop in US retail sales reflecting weak buying sentiment. .
Major losers among the Sensex stocks included Hindalco (down 5.46%), M&M (down 4.41%) and SSLT (down 4.09%).
Among sectoral indices, consumer durables fell 4.25%, followed by power (down 2.91%) and metal (down 2.28%).
According to analysts, this is a good opportunity for retail investors to buy frontline stocks. “This trend will not sustain for long as domestic institutions will move in,” said Deven Choksey of KR Choksey Shares and Securities.
“The Nifty has next major support in the range of 7,650. On the higher side, it will be 7,840/7850,” said Chouhan.
NAME-RAJ GAURAV
             PGDM 3 SEM