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New York  - As the US Treasury Department said it will prop up consumer lending as part of the emergency financial bail-out, US stock indices plunged more than 4 per cent Wednesday, with the Standard & Poor's 500 index dropping to a near five-year low.

The technology-heavy Nasdaq Composite Index also reached a five- year low.

New York - As the US Treasury Department said it will prop up consumer lending as part of the emergency financial bail-out, US stock indices plunged more than 4 per cent Wednesday, with the Standard & Poor's 500 index dropping to a near five-year low.

The technology-heavy Nasdaq Composite Index also reached a five- year low.

US Treasury Secretary Henry Paulson's plans to shift some of the focus of the final half of the 700-billion-dollar rescue fund to credit card and loan companies reflected growing concern over drops in consumer spending, auto buying and student borrowing.

"This market, which is vital for lending and growth, has for all practical purposes ground to a halt," Paulson said.

Indian stock markets have declined a lot during the last 10 months and capitalists have lost faith in the equities. But the golden rule of investing still remains unbroken, that in the long run companies with well-built fundamentals and talented management will always provide handsome returns.

The existing negative reaction has taken the rate of many shares much below their fair value. These shares cannot stay at such low levels and are expected to bounce back to somewhere closer to their fair value.

Singapore - Singapore shares went through another selling spree Wednesday on reports the city state is likely to experience negative economic growth next year.

The Straits Times Index (STI) fell 1.3 per cent, or 22.95 points, to 1,784.01.

The STI was down by 22.51 points at mid-day.

The Singapore Exchange closed with 250 losers against 177 gainers.

Volume totaled 1,126.4 million shares.

The market has failed to sustain mid-morning and mid-afternoon recovery attempts, analysts said.