Sensex below 16k level; Nifty down 65 points

Commentary

oi-Sneha

By Sneha B K

Published: Friday, May 18, 2012, 9:54 [IST]

After Greece, now Spain is adding to worries from Europe, after its economy contracted 0.3 percent in the first quarter after of 2012. Indian bourses opened lower tracking negative global cues like the Spain contraction and higher bond yields in the country.

Asian market fell on Friday on weak US manufacturing data indicating a declining global economy. In Asia, the Nikkei 225 was trading down by 2.44%, while the Hang Seng lost 2.27% and the Shanghai Composite was down 1.06%.

Global stocks felt the pressure after Moody's downgraded 16 Spanish banks, adding fuel to fire. Spain is Europe's fourth largest economy and much bigger in size than Greece. Any setback in the country could lead to a contagion effect in the European region.

At 9.35 am IST, Sensex was trading at 15872.98 points, down 195 points and the Nifty was at 4807.05 points, down 63 points.
On the sectoral indices on BSE, all the sectors were trading in negative terrain in early morning trade.

Stocks that failed to lure investors in early trade were Maruti Suzuki, Bajaj Auto, Siemens, Tata Motors.

Markets have reacted negatively to happenings in Europe with the global indices going into a tailspin in the last few days.

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