Markets plunge in opening trades

Markets in India have opened in red following cues from global peers. The Sensex opened at 16,939.

The index theerafter slumped to a low of 16,720 - down 268 points. The Sensex has recovered somewhat and is at 16,777 - down 209 points.

The Nifty is holding the 5,000 mark at 5,025- down 65 points.

US markets plunged overnight as fears of European debt crisis continued to worry investors. Markets saw the biggest prcentage loss since 1987.

The Dow closed at 10520, weaker by 347 points or 3.2%, Nasdaq ended at 2319, lower by 82 points or 3.4% and S&P shut shop at 1128, down 37 points or 3.2%.

Asian markets also fell as an effect. Nikkei dropped to two-month lows and is now down 400 points (3.7%) to 10,295. Hang Seng is quoting at 19,937, weaker by 195 points or 0.9%.

All the sectoral indices are in red. The BSE metal and realty indices have tumbled 2.3% each to 15,914 and 3,222, respectively.

Hindalco and Tata Steekl have plunged 3% each to Rs 159 and Rs 558, respectively. Sterlite has dropped 2.5% to Rs 721.

Tata Motors and Jaiprakash Asoociates have tumbled 2.5% each to Rs 794 and Rs 130, respectively.

ICICI Bank and DLF have shed 1.8% each to Rs 887 and Rs 293, respectively. Wipro, HDFC Bank, HDFC, Mahindra & Mahindra and ACC are down over 1% each.

Reliance has fallen below the Rs 1,000 mark ahead of the RIL-RNRL ruling. The stock is now down 1.3% at Rs 997.

Reliance Communications, ONGC, Grasim, SBI and Maruti Suzuki are the other big losers in the index this morning.

However, Cipla has gained 1.4% at Rs 351. Hindustan Unilever has added marginally to Rs 233.