Sensex drops to nearly 3-wk low,sheds 47 pts as metal cos hit
Falling for third straight day, the Sensex today dropped by 47 points to close at nearly three-week low amid Parliament failing to transact business yet again, raising concerns over the fate of economic reforms.business Updated: Aug 28, 2012 17:36 IST
Falling for third straight day, the Sensex on Tuesday dropped by 47 points to close at nearly three-week low amid Parliament failing to transact business yet again, raising concerns over the fate of economic reforms.
The BSE benchmark index, which had lost 171 points in previous two sessions, opened unchanged but dropped 108 points to 17,570.71 as metal counters including Sterlite Industries, Jindal Steel and Hindalco fell in the 3-5 per cent range.
After erasing some losses on the back of gains in Infosys, TCS and ITC, Sensex closed at 17,631.71, down 47.10 points or 0.27% over on Monday.
This is the lowest closing for the 30-share index since 17,557.74 hit on August 10.
The Parliament failed to transact any business for the sixth straight day on Tuesday as BJP continued to create ruckus by pressing its demand for resignation of Prime Minister Manmohan Singh even as other opposition parties wanted to take up debate on CAG report and other business.
A weak trend in the Asian region and lower opening in Europe on reports of slowdown in China and Eurozone might continue to hurt global economic growth, further dampened the market sentiment at the domestic front.
"Market sentiment became sceptical after political disagreement over several matters indicated that sturdy reform measures cannot be expected easily in near future," said Nidhi Sarswat, senior research analyst, Bonanza Portfolio.
The 50-share National Stock Exchange index Nifty lost 15.65 points, or 0.29% to 5,334.60, after touching the day's low of 5,312.60.
In the metal sector, Jindal Steel sank 4.88%, Sterlite Ind. by 5.13%, Tata Steel by 1.84% and Hindalco by 3.09%.