IT, banking stocks battered amid global economic worries

Companies from the information technology and banking sectors were battered heavily in the stock market this morning amid deepening worries about a slowdown of the global economy and a possible return of the recession in the US.

The BSE's IT index was down nearly 6%, with a heavy plunge in the share prices of Infosys, TCS, Wipro, Tech Mahindra and HCL Tech.

The banking index was also down over 2% in early morning trade. Companies like ICICI Bank, HDFC Bank and SBI saw their stocks plummet in opening trade.

The stocks fell on concerns that Indian IT companies were heavily exposed to the US and other European markets for their revenues and that Indian banks might also face the collateral damage if a financial crisis returns to haunt the global economy.

Infosys, ICICI Bank, HDFC Bank, TCS and Wipro were among the biggest losers on the benchmark Sensex, which fell by over 350 points within minutes of the market opening.

The Indian markets plunged this morning amid weak cues from other Asian markets after a sharp fall in the US last night.

European markets had also fallen sharply yesterday.

US-listed Indian companies also saw a heavy sell-off on the American bourses yesterday. Out of these, ICICI Bank ADRs (American Depository Receipts) fell by over 8%, HDFC Bank was down over 4.5%, Infosys plunged over 11% and Wipro fell by more than 8%.