Market mayhem: Sensex cracks below 24,000-mark, Nifty under 7,300-level

Zee Media Bureau

The BSE Sensex cracked below 24,000-level in mid-session trade Wednesday for the first time since May 16, 2014, by plummeting 482 points to 23,998.65.

Also, the NSE Nifty dipped below 7,300-level in intraday trade today.

The 30-share index was last trading lower by 451.76 points or 1.85 percent at 24,028.08 after moving in range of 24,325.77 - 23,998.65 early.

Asian markets suffered another rout today with the previous day`s China-fuelled rally wiped out by ongoing worries about plunging oil prices and the state of the world economy.

The International Monetary Fund`s decision to downgrade its global growth forecast for this year and issue a warning about the outlook added to the sense of doom across trading floors.

News from Beijing that the world`s number two economy -- a key driver of worldwide growth -- had expanded within forecasts provided a much-needed lift Tuesday.

While the figures represented the slowest rate in 25 years, they did fuel hope that China`s leaders would embark on a new round of stimulus, sending Asian and European markets sailing.

However, the joy gave way to the reality that oil prices were at more than 12-year lows and a supply glut was likely to continue for some time.

The mood was darkened by International Energy Agency`s warning that the market "could drown" in oversupply as key producer Iran -- freed from years of global sanctions -- resumes exports of the commodity.

On Wednesday US benchmark West Texas Intermediate fell to fresh lows of below USD 28, days after Brent also slipped below that level. In afternoon trade WTI was down 3.2 percent at USD 27.55 and Brent was off 2.2 percent at USD 28.13.

Crude has lost three quarters of its value since mid-2014, hit by a perfect storm of a supply glut, weak demand, a slowing global economy and a strong dollar.

Regional stock markets fell in line with the depressed oil price and on worries about China.

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Hong Kong was 3.5 percent off in the afternoon at its lowest levels since early 2012, with an outflow of capital from the city`s market putting pressure on the local dollar`s 32-year peg to the greenback.

Tokyo lost 3.7 percent to end at a close to a 15-month low and Sydney shed 1.3 percent, while Seoul dived 2.3 percent.

Shanghai swung in and out of positive territory before ending the day one percent lower -- it has lost more than 15 percent this year already.

With Agency Inputs