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Sensex Tanks 371 Pts To Below 16,500 Amid Global Mkts Turmoil

Mumbai, Aug 18: The BSE Sensex tanked 371 points today to nearly 15-month low of 16,469.79 on across the board selling as investors moved away from securities amid turmoil in overseas markets on fears of
PTI August 18, 2011 19:03 IST
PTI

Mumbai, Aug 18: The BSE Sensex tanked 371 points today to nearly 15-month low of 16,469.79 on across the board selling as investors moved away from securities amid turmoil in overseas markets on fears of global economic slowdown, and high domestic inflation and interest rates.

All the sectoral indices ended in losses, with some touching 52-week lows. IT, banking and metals led the decline.

Reliance Industries and Infosys, which carry 21 per cent weight on the Sensex, fell sharply.

The Bombay Stock Exchange 30-share index, Sensex, reached a high of 16,916.81 on opening, but slumped into the negative terrain closing at 16,469.79, lowest since May 26, 2010 when it had ended at 16,387.84. It tumbled by 371.01 points or 2.20 per cent today.

The broader NSE 50-issue Nifty also plunged 112.45 points or 2.22 per cent to end below the 5,000-mark at 4,944.15.

Analysts said investors ignored the slight fall in food inflation and moved in line with weak global trend. Food inflation fell to 9.03 per cent for the week ended August 6 from 9.90 per cent in the previous week but failed to ease concerns over a further hike in interest rates, they added.

“Inflation figure of above 9 per cent triggered fresh round of apprehensions about RBI going in for another round of rate hike in its next meeting,” said Shanu Goel, Senior Research Analyst at Bonanza Portfolio.

Globally, Asian markets ended sharply lower amid weak economic growth and debt problems in Europe and the US.

Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan lost between 0.13 per cent and 1.70 per cent.

In Europe, the CAC was down 2.95 per cent, the DAX by 3.70 per cent and the FTSE by 2.11 per cent. PTI