Sensex tumbles 455 points, Nifty dips below 6K-level
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Sensex tumbles 455 points, Nifty dips below 6K-level

Last Updated: Friday, May 31, 2013, 16:48
 
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Sensex tumbles 455 points, Nifty dips below 6K-level
Mumbai: The BSE benchmark Sensex on Friday tumbled by 455 points to close below key 20000-mark, wiping off Rs 1.1 lakh crore in investor wealth, on panic selling in realty, banks and PSUs as hopes of rate cut crashed after RBI comments amid GDP growth slumping to decade-low of 5 percent.

The 30-share barometer, after gaining 68 points in the previous session, tumbled 455.10 points, or 2.25 percent to 19,760.30. This is its biggest daily loss since March 2012.

HDFC, HDFC Bank and ICICI Bank fell in 3-4 percent range. Heavyweights ITC and RIL dropped by over 3.5 percent each. L&T, SBI, ONGC and Sun Pharma also witnessed selling.

All sectoral indices, barring IT, lost upto 3.3 percent.

Similarly, the NSE index Nifty plunged by 138.10 points, or 2.26 percent to 5,985.95. MCX-SX flagship index, SX40 today closed 258.98 points lower, or 2.16 percent, at 11731.91.

Belying hopes of further rate cuts, the Reserve Bank Governor D Subbarao's comments that there are still upside risks to inflation spooked stock markets.

Additionally, RBI's concern about widening country's current account deficit amid rupee falling to over 10-month lows, also put pressure.

Pulled down by poor performance of farm, manufacturing and mining sectors, economic growth slowed to 4.8 percent in the January-March quarter and fell to a decade's low of 5 percent for the entire 2012-13 fiscal.

"The main fears in the mind of investors are ballooning current account deficit and how soon can the interest rate come down. Market is nervous also because of likely portfolio changes due to changes in the MSCI index," said Motilal Osswal, CMD, Motilal Oswal Financial Services.

The realty sector index suffered the most by losing 3.38 percent to 1,684.92 as DLF fell 5.41 percent to Rs 194.85, its lowest in more than 8 months after its first quarterly loss since at least 2007.

Oil and gas index was second worst performer by falling 2.71 percent to 8,654.79 as the energy major Reliance Industries tumbled 3.62 percent to Rs 805.60.

A subdued trend in the overseas markets as investors awaited reports on American consumer confidence and business activity, also influenced the market sentiment.

PTI




First Published: Friday, May 31, 2013, 16:46


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