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Millennium Post

Volatility continues: Sensex tanks 340 pts on global cues

The 30-share barometer, which had gained 390.49 points on Thursday, fell by 339.90 points, or 1.28 per cent, to 26,297.38, with all the sectoral indices, except IT and Teck, ending in negative zone with losses up to 4 per cent.

On similar lines, the National Stock Exchange (NSE) index Nifty struggled to maintain the 7,900-mark and ended 100.60 points, or 1.26 per cent, down at 7,859.95 after dipping to 7,848.45 during the session.

Brokers said besides profit-booking by speculators, a lower closing on other Asian markets and a subdued opening of the european markets on growing concerns about the global economy as the head of the IMF warned that Euro-zone could slip into recession, influenced the trading sentiment here.

They said, however, rally in Infosys on the back of good second quarter earnings, cushioned the fall in the benchmark Sensex. Of the 30 Sensex shares, 23 shares ended with losses led by Tata Motors (down 5.3 per cent), Hindalco (4.79 per cent) and Sesa Sterlite (4.60 per cent).

Sectorwise, the metal index suffered the most by losing 4.11 per cent, followed by auto index by 2.78 per cent, FMCG index 2.56 per cent, Banking index closed 1.80 per cent lower. Bucking the trend, IT index rose 2.29 per cent, while Teck index gained 1.17 per cent.

Meanwhile, provisional data released by stock exchanges showed foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore on Thursday.

Asian stocks finished lower after US shares tumbled on Thursday after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy. Key benchmark indices in China, Singapore, Hong Kong, Japan and South Korea fell by 0.62 per cent to 1.90 per cent.

European markets were also trading lower amid concerns that the region’ s central bank will face obstacles in measures to revive the region’s economy. Key benchmark indices in France, Germany and UK fell sharply by 1.41 per cent to 2.26 per cent.

In the US markets, Dow Jones industrial average fell by 1.97 per cent, S&P 500 dropped by 2.07 per cent and Nasdaq composite tumbled by 2.02 per cent. Shares of Midcap and small-cap tumbled by 1.38 per cent and 1.12 per cent respectively on renewed selling pressure from retail investors.

The total market breadth turned negative as 1,910 stocks closed in red while 998 finished in green. Major losers were Tata Motors (5.31 per cent ), Hindalco Ind (4.79 per cent ), SSLT (4.60 per cent ), Tata Steel (4.03 per cent ), M&M (3.59 pct), ITC (3.31 per cent ), HDFC (3.28per cent), Bharti Airtel (2.55per cent), Coal India (2.55 per cent), HUl (2.52 per cent), HDFC Bank (2.39 per cent), Axis Bank (2.12 per cent) and Tata Power (2.07 per cent).

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