Sensex tumbles by 253 pts on weak GDP
Renewed concerns over decelerating Indian economic growth, China showing slower pace of manufacturing expansion and euro-zone worries pulled down the BSE benchmark Sensex by 253 points to close below 16,000 mark at 15,965.16.business Updated: Jun 02, 2012 16:57 IST
Renewed concerns over decelerating Indian economic growth, China showing slower pace of manufacturing expansion and euro-zone worries pulled down the BSE benchmark Sensex by 253 points to close below 16,000 mark at 15,965.16.
Shares of auto, capital goods, refinery, banking and consumer durables declined sharply due to heavy selling.
The BSE Mid-cap index outperformed the Sensex, falling 1.34%, and the BSE Small-cap index underperformed the Sensex, falling 1.96%.
The economic growth rate slowed to a nine-year low, both in the March quarter at 5.3% as well as in 2011-12 at 6.5%.
The market declined even as finance minister Pranab Mukherjee said the government will take necessary steps to improve growth. The finance ministry also announced a slew of austerity measures to cut the government expenditure.
Asian markets were influenced by lesser-than-expected growth in the China's manufacturing, while troubles in Spain and Ireland affected the sentiment in Europe.
The BSE benchmark Sensex resumed higher at 16,289.82 and hovered in a range of 16,544.38 and 15,933.48 before ending the week at 15,965.16, showing a net loss of 252.66 points, or 1.56%.
The NSE 50-share Nifty also dropped by 78.80 points, or 1.60%, to finish at 4,841.60.
Trading was volatile throughout the week as the May 2012 derivatives contracts expired on Thursday.
Out of the 30-share Sensex family, 18 stocks finished in red while others ended in green.
Major losers were Tata Motors (16.65%), Jindal Steel (6.00%), Sterlite Ind (5.78%), Larsen (4.37%), ONGC (4.20%), ICICI Bank (4.19%), Maruti Suzuki (3.86%), Tata Power (3.70%), DLF (3.21%) and Tata Steel (2.51%).
However, Hindalco Ind firmed up by 4.11% followed by Tata Power (3.70%), Coal India (2.57%) and NTPC (2.22%).
Among the major indices the BSE-Auto dropped by 6.05% followed by the BSE-Capital Goods 3.49%, the BSE-Consumer Durable 2.30%, the BSE-Oil & Gas 1.98%, the Bankex 1.97%, the BSE-Metal 1.52%, the BSE-Healthcare 1.25% and the BSE-Realty 1.24%.
However, the BSE-IT inched up by 0.53%, the BSE-Teck 0.29% and the BSE-FMCG 0.02%.
The total turnover at BSE and NSE was Rs 8,736.49 crore and Rs 50,085.16 crore, respectively, against the previous weekend's level of Rs 8,994.48 crore and Rs 42,456.46 crore.