Sensex tanks 184 points as IT, banking stocks decline
The Sensex started on a negative note and fell further to touch the day's low of 22,286.26. It closed down by 184.52 points, or 0.82% at 22,323.90, the lowest level since April 16 this year.business Updated: May 07, 2014 16:37 IST
The benchmark index Sensex tanked 184 points to close at nearly three-week low of 22,323.90 points on Wednesday as technology, banking and auto stocks fell on fresh round of selling amid slowing down of foreign capital inflows.
The 30-share BSE barometer started on a negative note and fell further to touch the day's low of 22,286.26. It closed down by 184.52 points, or 0.82% at 22,323.90, the lowest level since April 16 this year.
The gauge had gained 104.53 points in the previous two sessions.
The broader NIfty of the National Stock Exchange dipped below the crucial 6,700 level and closed at 6,652.55, down by 62.75 points, or 0.93%.
Brokers said sentiment turned weak as selling pressure gathered momentum ahead of outcome of General elections. Slowing down of foreign capital inflows also impacted the market, they added.
A weakening trend in the global markets on escalating tensions in Ukraine added to downward pressure, they said.
IT stocks, mainly Infosys and TCS, witnessed heavy sell-off after the rupee rose to a one-month high and reports that UBS downgraded Infosys.
Infosys lost 3.15%, Tata Consultancy fell by 1.48% and Wipro by 1.77%.
HDFC fell by 2.75%, Bajaj Auto by 1.60% and Maruti Suzuki by 1.46%.
The IT sector index suffered the most, losing 2.59% to 8,491.49, followed by the teck index which fell 2.23% to 4,734.54.
The realty sector index lost 1.11% to 1,373.54 points and metal index by 0.71% to 9,894.94 and auto index 0.70% to 13,265.53.
Of the 30 Sensex shares, 25 declined, while five ended with gains.