On Monday evening US House of representatives rejected Bush's $ 700bn bailout package. Dow Jones closed 770 points below the previous close, its biggest single-day drop in point terms. Nasdaq closed -199 points.On back of Global meltdown, Sensex closed -506 points at 12595. Nifty closed below at 3850.
US had already taken steps for the short sellers to prevent further downtrend in the Financial stocks, Now Korea planning to stop the same. Taiwan and Hongkong seeking the same. India also planning to take preventive steps. As per Leading news paper investors lost around Rs.5 trillion in 2 weeks. Leading US bank Wachovia Corp, which was plannning to buy out Morgan Stanley few weeks back, has now ended up being swalloed by Citigroup. Netherlands, Belgium and Netherlands and Luxembourg joined hands to lend $16bn to prevent the Belgium bank Fortis from gooin bankcrupt. In Germany Hypo Real Estate, the 2nd largest commercial property lender, received E35bn loan guarantee from ther German Government. France and Belgium will help bank Dexia, National City corp, US based may also the same problem.
Indian Real Estate stock prices have come down sharply. Banking sector have also seen a sharp fall in their share prices. Yesterday Nifty made a new low since Jan 2008. Nifty closed at 3850. As the global markets are in deep red, Indain markets will also feel the same effect. Nifty has a good support at 3750, Out markets can bounce back in the late hours.
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