Tech & Biz

Obama victory met with Stock Market mayhem

by Sanjay Jha | November 5, 2008 at 09:50 pm

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Indian Stock market opened sharply lower on Thursday tracking weak sentiment across global markets. Indian market followed the cue from US stocks market which plummeted on Wednesday. Wall street didn't give Barack Obama's historic victory a roaring welcome. New batch of dismal economic data underscored the massive challenges awaiting his administration. President elect Obama has spoken of new economic measures to bring the sagging economy back on track.

Stocks opened sharply lower on Thursday tracking weak sentiment across global markets.
At opening, National Stock Exchange’s Nifty plunged 101 points to 2893. Bombay Stock Exchange’s Sensex lost 364 points to 9755.

US stocks plummeted on Wednesday, a day after Barack Obama's historic victory in the US presidential election, as a fresh batch of dismal economic data underscored the massive challenges awaiting his administration.

Grim economic included a report that showed deep cuts in employment by private employers in October and data that showed the vast service sector contracted sharply last month as the worst financial crisis in 80 years roiled the world's largest economy.

Asian stocks followed heavy losses on Wall St as US election euphoria fades after grim jobs data surfaced. The fears of a deep and protracted recession eclipsed US election euphoria led to the slide in the stocks.

Asian markets dropped sharply lower on Thursday. South Korea's benchmark stock index fell for the first time in six sessions today following declines on Wall Street. The won fell 3.6 per cent.
The Korea Composite Stock Price Index fell 52.19 points, or 4.4 per cent, to 1,129.31 within the first hour of trading. The Kospi at one point had declined as much as 5.3 per cent.

The new employment data clearly indicated the health of the US economy. It showed that economy is shrinking and that made investors brace for a potentially deep and lasting global recession. US stocks plunge as recession woes resurface, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 per cent.

A case of postelection nerves sent Wall Street plunging on Wednesday as investors, looking past Barack Obama's presidential victory, returned to their fears of a deep and protracted recession. Volatility swept over the market again, with the Dow Jones industrials falling nearly 500 points and all the major indexes tumbling more than 5 percent.
The market was widely expected to give back some gains after a runup that lifted the Standard & Poor's 500 index more than 18 percent and that gave the Dow its best weekly advance in 34 years; moreover, many analysts had warned that Wall Street faced more turbulence after two months of devastating losses.
But investors lost their recent confidence about the economy and began dumping stocks again.