Mumbai: Indian equity benchmarks fell nearly 2 per cent on the first session of October on renewed fears of Greece default as its government stated it would miss deficit targets for 2011 and 2012. The 30-share BSE Sensex shed 302.31 points, to close at 16,151.45 and the 50-share NSE Nifty fell 93.75 points, to end at 4,849.50.
European markets like France's CAC, Germany's DAX and Britain's FTSE were down 2-2.5 per cent. Asian markets too closed sharply lower; Hang Seng plunged 4.4 per cent. Nikkei, Straits Times and Taiwan fell 1.8-3 per cent.
Bruno Verstrate, CEO of Nautilus Invest said Greece has taken the whole global market hostage and only Germany can ease the pain.
"The Greek Minister said that the next tranche of aid was already decided on and later during the day that news came out that they would not be able to get their deficit target for 2011 and 2012. The magic formula of cutting into expenses and making the economy grow is still not sound. The debt to GDP is being hit from those debt levels which continues to go up and from the GDP level which has less growth. This has sent shockwaves given the extent of measures that the Greek government already took," Verstrate said.
Greek government approved USD 8.8 billion austerity measures during weekend, which came ahead of European officials meet in Luxembourg on Monday.
On the home turf, shares of financial, metal, capital goods, power, realty and select technology companies pulled the markets down. Heavyweight Reliance Industries was the leading dragger throughout the session, falling 2.5 per cent.
Samir Arora, fund manager at Helios Capital feels the current downtrend could turn out to be more painful than 2008 collapse. He believes October is going to be a bad month for equities all across the board.
From the financial space, ICICI Bank plunged 4 per cent. SBI, HDFC Bank, Axis Bank, Kotak Mahindra Bank and PNB were down 2-3 per cent. HDFC fell 1 per cent.
High beta stock - DLF was the biggest loser on Nifty, falling over 8 per cent.
From the metal space, SAIL, Tata Steel, Sterlite Industries, Hindalco and JPSL crashed 4-6 per cent.
Among other largecaps like Infosys, ITC, NTPC, Wipro, BHEL and HUL slipped 2-3 per cent.
However, PSU oil & gas, telecom and Anil Dhirubhai Ambani Group's stocks bucked the trend.
Reliance Power, Reliance Capital, Reliance Infrastructure and Reliance Communications gained 0.4-1.7 per cent.
Oil marketing companies like BPCL, HPCL and IOC rallied 2.5-5 per cent. ONGC, TCS, Bharti Airtel, M&M and Hero Motocorp were up 0.6-0.9 per cent.
The broader indices too followed the benchmarks - the BSE Midcap and Smallcap indices dropped 1.5-2 per cent. About three shares declined for every share rising on NSE.
Total traded turnover on both exchanges was nearly Rs 92,000 crore.
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