Sensex drops to 7-month low as buyers stay away
A benchmark index for Indian equities markets on Tuesday closed below the 18,000 points mark - for the first time in over five months - as selling intensified across the market breadth.business Updated: Feb 08, 2011 23:05 IST
The benchmark Sensex of the Bombay Stock Exchange on Tuesday continued with its losing streak that started since the beginning of 2011 and fell by 261 points, or 1.4%, to close at a new seven-month low of 17,775.7, mainly in the absence of buyers in the market.
The index has fallen 2,733 points, or 13.3%, so far in 2011.
The broader Nifty of the National Stock Exchange too fell by 1.6% to close at 5,312.6.
This is the first time since August 31 that the Sensex has closed below 18,000.
Indian markets led the fall among Asian peers on Tuesday with Chinese markets gaining 0.3%, even as the Chinese central bank announced a quarter percentage point hike in the benchmark deposit and lending rates in order to tame inflation.
Tuesday's fall was mainly broadbased and the mid-cap and small-cap indices fell by 2.4% and 3.2% respectively.
The current trend is expected to persist, experts said. "The weakness in the markets will continue for around a year," said the head of investment at a leading mutual fund.