Mumbai: The concerns over Dubai’s debt situation and the weak global cues dipped Sensex today over 451 points in early trade.
Similarly, the wide-based National Stock Exchange index Nifty dropped by 140.50 points to 4865.05 points.
Brokers said the selling focus was more on banking and realty stocks after Dubai’s debt problems revived concerns about the global financial system and rattled markets across Europe and Asia.
Dubai said on Wednesday it wanted creditors of Dubai World and
property group Nakheel to agree a debt standstill as it restructures
Dubai World, the conglomerate that spearheaded the emirate’s breakneck
growth.
Banking stocks came under particular pressure because of the potential
exposure to any bad debts in the Gulf, as did shares in European car
companies, some of which are partly owned by sovereign wealth funds
from the region.
