The Bombay Stock Exchange benchmark Sensex wiped off early gains by losing over 387 points at noon on Friday on heavy selling after inflation rose to a three year high at 7 per cent.
The 30-share index, Sensex, which commenced the day higher at 15,896.09, fell back to record a loss of 387.16 points at 15,445.39 at 1200 hours.
Inflation galloped to 7 per cent for the week ended March 22, on higher prices of food, vegetables, minerals and manufactured items, even as measures to tame prices are expected to take effect only in 2-3 weeks.
Meanwhile, second wide-based National Stock Exchange index Nifty fell by 102.70 points at 4668.90 as some of the heavy weights fell sharply after blue-chip companies announce their quarter earnings below market expectations.
Bharat Heavy Electricals Ltd. Fell for a fifth day, losing Rs.89.70 at Rs.1665.25 after JPMorgan Chase reduced its share price estimate for India's largest producer of power equipment to Rs.2,200 from Rs.2,850 earlier. Bharat Heavy reported its worst quarterly profit decline in six years yesterday.
Reliance Industries, a index-heavy dropped by Rs.34.75 at Rs.2359, Reliance Energy by Rs.39.35 at Rs.1150.10, State Bank of india by Rs.32.10 at Rs.1607, Infosys Technologies by Rs 45.50 at rs.1478.15 and Housing Development Finance Corporation Ltd by Rs.110.65 at Rs.2332.25.