Sensex falls further, down by 150 points
The BSE 30-share index opened low at 12,400.71 and soon plunged to 12,224.44 within the first five minutes of trading.india Updated: May 12, 2006 16:51 IST
Steep fall in select cement and banking shares, pulled down the Bombay Stock Exchange (BSE) Sensitive index (Sensex) further sharply by 150.30 points to end at 12,285.11 points on persistent heavy selling by funds and operators.
The BSE 30-share index opened low at 12,400.71 points as against 12,435.41 points on Thursday and soon plunged to 12,224.44. Thereafter, it recovered marginally and closed at 12,285.11, still showing a sharp fall of 1.21 per cent over previous close.
Similarly, the National Stock Exchange index, S&P CNX Nifty fell sharply by 51 points or 1.38 per cent to 3650.05 points from 3701.05 on Thursday.
Cement giants like ACC, GACL and Grasim declined sharply on heavy pressure after the report that the government on Friday threatened to ban cement exports or impose a cess if cement companies failed to initiate voluntary steps by May 15 to check spiralling prices of the commodity.
According to brokers, market sentiment turned bearish due to fears of slowing down in reforms after Left retained its position in West Bengal and made a handsome comeback in Kerala elections.
The rise in inflation to 3.59 per cent during the week ended April 29 as against 2.54 a week ago also had negative impact on the market, brokers said.