Sensex tanks 237 points on P-note concerns, global meltdown

Mumbai: The benchmark BSE Sensex plunged by 237 points to trade below the 28,000 level in morning trade due to continued selling by investors after concerns over participatory notes and sharp loses in global markets.

The 30-share index tumbled 237 points, or 0.84 per cent, to 27,603.02, with all sectoral indices led by realty, banking and auto posting losses up to 1.46 per cent.

On similar lines, the NSE Nifty also slipped below the crucial 8,500-level by declining 75.65 points, or 0.88 per cent, at 8,445.90.

The Sensex had tumbled 392.62 points in the previous two sessions on muted earning figures reported by companies and weak global cues.

Brokers said participants were concerned after a Supreme Court-appointed SIT last week suggested Sebi to come up with regulations on collection of beneficial ownership details of P-note holders, as also for monitoring any unusual rise in stock prices.

Besides, sustained selling after disappointing earnings posted by majority of bluechip companies so far and a weak trend at other Asian bourses following weekend sell-off on the US markets impacted the sentiments.

Among the major losers, Tata Motors fell by 3.11 per cent, Larsen by 2.81 per cent, ICICI Bank by 2.80 per cent and Tata Steel by 2 per cent.

Bucking the trend, shares of Reliance Industries were trading 0.28 per cent higher after company posted better-than-expected its first quarterly earnings after trading hours on Friday.

Among other Asian markets, Hong Kong's Hang Seng was down 2.50 per cent while Japan's Nikkei slid 0.98 per cent in early trade today on growing concerns about the Chinese economy.

The US Dow Jones Industrial Average ended 0.92 per cent down on Friday.