US markets posted their biggest losses since Oct 1st

The US markets on Wednesday, posted their biggest losses since October 1st on the back of worries about the recovery process. An unexpected decrease in new-home sales weighed on the markets. Sales dropped 3.6% in September and August’s gain was revised lower. Also Goldman Sachs slashed its forecast for third-quarter GDP to 2.7% from 3%. Meanwhile, the EBOE volatility index jumped to just shy of 28.

Base metals saw deep cuts with copper falling for the third straight day, the longest slump in six weeks. The metal fell more than 2% while other metals like aluminum, nickel and zinc were down 3 to 4%.

Crude dropped for a second day after a government report showed an unexpected increase in US gasoline stockpiles and crude supplies rose to a two-month high. Prices fell to as low as $ 77.

At closing bell, the Dow Jones was down 119.48 points, or 1.2%, to 9,762.69. The S&P 500 index was down 20.78 points, or 2%, to 1,042.63. The Nasdaq dropped 56.48 points, or 2.7%, to 2,059.61.

Indian ADRs ended in red on Wednesday. In IT space, Satyam Computers was down 9.98% at $ 4.51, Infosys was down 1.7% at $ 46.39, Wipro was down 3.04% at $ 18.17 and Patni Computers was down 0.62% at $ 19.22.

In Banking space, ICICI Bank was down 3.9% at $ 32.98 and HDFC Bank was down 1.37% at $ 112.57. In Telecom space, Tata Communication was down 5.19% at $ 18.1 and MTNL was down 2.51% at $ 3.11.

In other sectors, Sterlite Industries was down 3.54% at $ 15.53, Tata Motors was down 0.34% at $ 11.68 and Dr Reddy’s Labs was down 1.64% at $ 20.42.

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