Millennium Post

Sensex tanks 253 points

Stock markets fell for the third day with the Bombay Stock Exchange (BSE)  benchmark Sensex index losing 253 points to close below 16,000 level after a week due to increased capital outflow on economic growth worries and deepening eurozone debt crisis.

The 30-share barometer plunged by 253.37 points, or 1.56 per cent, to 15,965.16, a level last seen on 23 May .

The broad-based National Stock Exchange index Nifty settled below 4,900 level by dropping 82.65 points, or 1.68 per cent, to 4,841.60.

Beaten by a slump in GDP numbers, the market received another jolt following a fall in manufacturing growth in India as well as in China.

While the GDP grew at 5.3 per cent last quarter, a 9-year low. Foreign funds were net sellers of Indian stocks for the second month in May by pulling out $161 million, after withdrawing $103 million in April.

Market sentiment was also hurt by a weak trend in the Asian region and lower opening in Europe on disappointing US data and Chinese manufacturing numbers.

IT stocks, which get over 50 per cent of their revenue from Europe and the US suffered heavy losses. TCS dropped 1.69 per cent to Rs 1,224.75 and Infosys declined by 2.13 per cent to Rs 2,387.80.

The most heaviest on the index RIL plunged 3.16 per cent to Rs 683.70, heavy machinery major L&T by 3.22 per cent to Rs 1,134.50 and BHEL by 2.48 per cent to Rs 206.70.

The capital goods sector suffered heavy losses by 2.99 per cent to 8,553.10 followed by power index by 2.49 per cent to 1,768.73.

Auto sector index extended losses for the third straight day by falling 2.17 per cent to 8,680.30 on reports of fall in vehicle sale in May.
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