Markets have seen the bloodbath being extended, with global indices also falling sharply, in the wake of the S&P downgrade of the credit rating in the United States. Recession is feared in the worldwide economies, following this.
Crude fell 4% to USD 78 a barrel on the NYMEX. However, gold rallied 2.7% to USD 1766 an ounce.
At 10:22 AM, the Nifty has seen a cut of 92 pts, to read 5026 – down by -1.8%.
The Sensex recovered about 300 points from intra-day low. Recovery was seen in Asian markets too. China’s Shanghai, which was down 2.5% at one point, pared losses to trade down only 1%. Taiwan gained 0.5% after dropping 4.5% in the morning trade.