Sensex dips below 16k again, drops 253 pts on growth worries
Stock markets fell for the third day with the BSE benchmark Sensex index losing 253 points to close below 16,000 level after a week due to increased capital outflow.business Updated: Jun 01, 2012 16:56 IST
Stock markets fell for the third day with the 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 euro-zone debt crisis.
The 30-share barometer, which lost 220 points in the last two trading sessions, plunged by 253.37 points, or 1.56%, to 15,965.16, a level last seen on May 23.
The broad-based National Stock Exchange index Nifty settled below 4,900 level by dropping 82.65 points, or 1.68%, 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% last quarter, a 9-year low.
Foreign funds were net sellers of Indian stocks for the second month in May by pulling out USD 161 million, after withdrawing USD 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% of their revenue from Europe and the US suffered heavy losses. TCS dropped 1.69% to Rs 1,224.75 and Infosys declined by 2.13% to Rs 2,387.80.
The most heaviest on the index RIL plunged 3.16% to Rs 683.70, heavy machinery major L&T by 3.22% to Rs 1,134.50 and BHEL by 2.48% to Rs 206.70.
The capital goods sector suffered heavy losses by 2.99% to 8,553.10 followed by power index by 2.49% to 1,768.73.
Auto sector index extended losses for the third straight day by falling 2.17% to 8,680.30 on reports of fall in vehicle sale in May.