The Bombay Stock Exchange Sensex on Thursday nosedived by over 250 points to fall from its two-year high on fears that high food prices will lead to a hike in interest rates.
The Sensex, which had gained 441 points in the last four trading sessions to regain the crucial 18,000 points level after 25 months, tumbled 255.62 points to 17,714.40 after touching the day's low of 17,679.34.
Similarly, the wide-based National Stock Exchange index Nifty dropped 70.20 points to 5,304.45. It moved between
5,383.65 and 5,290.25 points.
Marketmen said investors sold stocks after food inflation accelerated to 17.7 per cent in the week ended March 27 from a
The pace quickened for the second straight week, increasing pressure on the central bank to raise interest rates.
In the 30 share BSE index, 26 stocks fell while four ended with gains.
Among the major losers were Reliance Industries, SBI, HDFC Bank, ICICI Bank, Hero Honda, Sterlite Industries, Tata Steel, Larsen and Toubro, BHEL, and Sun Pharma.