Mumbai, Nov. 11: Fears of a global recession spooked Indian stocks as the sensex lost 696 points to end at 9839.69. The euphoria surrounding China’s $600-billion stimulus plan was, therefore, short-lived.

Analysts said investors brooded over the turmoil in the US industry where companies were announcing job cuts.

Circuit City, the second largest US electronics retailer, has filed for bankruptcy, while speculations are swirling over investment bank Goldman Sachs posting its first-ever quarterly loss.

In Europe, the situation was no better with Vodafone cutting its full-year revenue outlook for the second time in four months.

In Asia, data showed that the pace of exports from China had slowed down. The picture in India is not of optimism either with several research outfits lowering the growth forecast for this fiscal and the next.

Asian markets opened weak on account of the grim global outlook, and Indian equities followed suit.

The sensex opened lower at 10405.39 and fell continuously under selling pressure.

The selling was particularly heavy towards late noon with the index slipping to an intra-day low of 9799.45.

It ended at 9839.69, a drop of 696.47 points, or 6.61 per cent.

“Global factors led to the selling pressure today. Moreover, there is a dearth of strong buyers though stocks are now available at extremely cheap valuations”, said an analyst with a foreign brokerage.

According to Arun Kejriwal, director of KRIS, “So long as the volumes in our markets don’t go up, the volatility will not go down and stability, too, won’t come. At this point of time, I don’t see either coming.”