Business

AIG bailout fails to enthuse markets

MUMBAI: After breathing a little easy on Tuesday, the markets came under pressure again on Wednesday pulling down the Sensex by 256 points to two-month low of 13262.90 amid persistent concerns over global financial scenario even as the troubled U.S. insurer AIG got a fresh lease of life.

Analysts said buying support was unlikely in the coming days as turmoil in the global credit market would prompt investors to look for investment options other than stocks.

The Bombay Stock Exchange benchmark Sensex, after notching up more than 100 points in early trading closed the day lower by 256 points at 13262.90.

There were alternate bouts of buying and selling which saw the Sensex swing between a high of 13620.74 and a low of 13127.96.

While banking stocks came under pressure after a brief respite on Tuesday, realty stocks continued to be battered as many realty firms were said to have exposure to the U.S. investment bank Lehman Brothers.

While realty index took a hit of 4.13 per cent, bankex was down by 3.79 per cent. Metal and FMCG indices also lost more than three per cent.

FIIs remained net sellers pulling out Rs. 4,421.60 crore in the first fortnight of September. — PTI

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