16 Nov 2010 Closing Market Updates

16 Nov 2010 Closing Market Updates  15:30

Shanghai undex collapsed by 3.98% as China’s stocks fell, driving the benchmark index to the lowest in a month, on speculation the government will intensify measures to curb accelerating inflation including higher interest rates and price controls.

PetroChina Co. and Jiangxi Copper Co. plunged more than 6 percent on concern further tightening will curb oil and metals demand. China Vanke Co. slid to the lowest since September, pacing declines by real-estate developers, after the government ordered first-time foreign homebuyers to show proof they don’t own other properties. China Construction Bank Corp. and Agricultural Bank of China Ltd. dropped more than 2 percent on the prospect higher borrowing costs will cut loan growth.
As a cascading effect, other Asian markets like Hang Seng and Nikkei weakend and closed with 334.16 points and 30.41 points respectively.
Europen markets also opened with a gap down after heavy losses for Chinese stocks and as Ireland continued to resist mounting pressure to accept a bailout.
Indian markets no doubt tanked more than 2%. Nifty ended at 5987 falling 134.60 points whereas Sensex fell 435.59 points to end at 19874.10.
Nifty ended below 6000 mark first time after 28th Oct 2010, similarly Sensex also ended below 20000 mark.
All 13 BSE Sectoral Indices ended in red.Realty index plunged the most by 3.75%