The growing belief that the world will suffer a punishing economic recession has investors furiously dumping stocks. Grim news from overseas has added to the worldwide gloom. Big companies, including Sony and Daimler, are warning of tough times ahead, joining US companies in scaling back their earning forecasts.

Mumbai, October 24
A double whammy from a tepid mid-term credit policy by the RBI and bearish global market caused the Sensex plunge 11 per cent or 1,070 points dragging virtually every stock on the bellwether index to new 52-week lows. The Sensex ended the day below 9,000 at 8,701 points. In the broader markets, the Nifty was down 359 points at 2,584.

According to analysts, today's was the second-biggest loss ever for Nifty and the third-biggest for the Sensex.

Among the biggest losers on the Sensex today was DLF, which fell 24 per cent. Ranbaxy, Hindalco and Tata Motors were the other major losers falling more than 16.5 per cent each. Even Reliance Industries fell 16.4 per cent lower to close at 1,015 after touching a low of Rs 991.

Of the sectoral indices, the BSE realty index plunged 24.4 per cent to end at 1,743 levels. The biggest loser was Unitech which fell 51.3 per cent. The oil and gas index on the BSE dropped 14.8 per cent. Essar Oil was the biggest loser in the pack, shedding 19.3 per cent.

Banking scrips took a beating as well with Kotak Mahindra Bank falling the most at 20.7 per cent. OBC, ICICI Bank and Axis Bank also closed lower by over 14 per cent.