Mkts plunge in early trade on weak global cues

MARKET SWINGS: Rate sensitives are taking huge beating on the bourses ahead of RBI policy.

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Markets have plunged in early trade on the back of sell off in US markets, which was led by financial stocks wherein Merrill Lynch will take a 5.7 billion dollar write-down in Q3 and will raise money over USD 8 billion. Selling pressure is seen in banking, realty, auto and capital goods stocks.

Rate sensitives are taking huge beating on the bourses ahead of RBI policy meet, wherein CNBC-TV18 expects 25 bps hike in repo rate and CRR.

Sensex managed to hold back its 14000 mark, which was down 263 points at 14,085, at 9:56 am. Nifty was down 66 points at 4,266. CNX Midcap was down 77 points at 5,528.

Amongst frontliners, ICICI Bank, SBI, HDFC Bank, ACC, Tata Comm, BPCL, Tata Motors, JP Associates, HDFC, Reliance Ind, DLF, BHEL, Tata Power, L&T and Maruti Suzuki have crashed while TCS, ONGC, Cairn India and Sun Pharma gained.

Asian markets were trading lower. Nikkei, Hang Seng, Shanghai, Straits Times, Taiwan and Kospi fell 1.5%-3.6%.

In US markets stocks tumbled led by financials after two more banks were shut down by regulators. Crude's bounce back after three straight weeks of decline too put pressure. The Dow Jones industrial average lost 239.61 points, or 2.11%, to 11,131.08. The Nasdaq composite index declined 46.31 points, or 2%, to 2,264.22. The S&P 500 index fell 23.39 points, or 1.86%, to 1,234.37.