Sensex falls 296 pts amid weak cues

It turned out to be a highly volatile day at the capital markets on Monday with the benchmark Sensex of the Bombay Stock exchange closing with a fall of 1.5%, or 295.7 points, at 19,091, in line with significant falls in the European markets.

It turned out to be a highly volatile day at the capital markets on Monday with the benchmark Sensex of the Bombay Stock exchange closing with a fall of 1.5%, or 295.7 points, at 19,091, in line with significant falls in the European markets. The index had earlier touched an intra-day high of 19,649.

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The broader Nifty of the National Stock Exchange also closed with a fall of 1.6%, or 95 points, at 5,729. Major indices in Germany, the UK and France fell by 2.1%, 1.8% and 2.5% respectively. Even the Dow Jones Industrial opened 1.4% below its Friday closing.

Rise in inflation to 8.98%, weak quarterly results and guidance from Infosys contributed to the decline, complimented by global factors such as the ongoing European debt crisis and China raising its deposit reserve ratio on Sunday.

The BSE Realty and IT indices were the biggest losers with 3.2 % and 2.7% fall respectively. Among Sensex companies, TCS and Jaiprakash Associates fell by 4.7% and 3.1% respectively.