It’s not the terror attack that’s troubling the market now. The benchmark Sensex on Monday fell below 9,000 again as weak global markets, fall in exports and manufacturing activity added to the concerns about the weakening domestic and global economy, pulling the domestic bourses to intraday low in late trade. The BSE 30-share Sensex lost 252.85 points, or 2.78 per cent, to 8.839.87, shedding 487 points from the day’s high.

The NSE S&P CNX Nifty fell 72.20 points, or 2.62 per cent, to 2,682.90. The Sensex had ignored terror attacks and gained 66 points on Friday.

After an initial surge triggered by a reshuffle of key government posts on Sunday, the market pared gains in mid-morning trade as a survey showed fall in India’s manufacturing output in the month just gone by. The market firmed up again in early afternoon trade but it shortly pared gains following reports that exports had fallen 12.1 per cent in October. From that low, the market once again firm up in afternoon trade but declined as European markets showed losses.

“The markets opened in green on the back of political restructuring that happened during the weekend which brought expectation of newer policies to help the markets but weak European markets, negative US index futures and weak economic data pulled down the market from the highs draining away all the gains of the day and closed in the red,” said an analyst with Geojit Securities.

What upset the marketmen most is the fall in exports, the first year-on-year fall in nearly three years, as slowing output at home and weakening economies in key overseas markets slashed demand.

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