Sea of red across global markets; Indian indices too drop sharply

Updated: Monday, July 23, 2012, 15:46 [IST]

Sea of red across global markets; Indian indices drop sharpl

Benchmark indices fell across the globe, as fresh worries over Spain needing a full-fledged bailout escalated selling in equities. Indian indices too followed global peers, with the Sensex falling 281 points, while the Nifty dropped 87 points, to close the day at 5117 points.

Maruti led the fall today, with the stock of the company dropping almost 6% on worries that the lockout at the company's Manesar would hit production and profitability at the company.

Metal stocks were also amongst hardest hit in trade today with Sesa Goa plunging 4%, Hindalco plunging 5%, Jindal Steel 3%, Sterlite 5% and Tata Steel 3%.

The only stock that gained today amongst the Nifty stocks was Dr Reddy's Laboratories.

The large scale fall in the indices could be attributed to lingering worries over Spain, which many believe would now need a full-fledged bailout, after one more region in the country indicated that it might need bailout. Murcia looked to join the Valencia region in tapping the government programme to help its finances.

This had a cascading sell off, as analysts believe that this could mean that Spain might now need a full fledged bailout joining Greece, Portugal and Ireland.

Domestically, the better than expected results of construction major Larsen and Toubro failed to provide cheer. In fact, the stock dropped along with the market.

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