Sensex tumbles 5.14 per cent on fuel price hike
The Bombay Stock Exchange index, Sensex, plunged by about 843 points, or 5.14 per cent, over the week on across the board sell-off triggered by a spate of negative factors, mainly a higher-than-expected fuel price hike.
The 30-share index ended the week at a nine-week low of 15,572.18 points, a huge fall of 843.39 points from its previous weekend's close of 16,415.57 points.
Similarly, the wide based S&P CNX Nifty of the National Stock Exchange plunged 243.30 points, or 4.98 per cent, to close at 4,627.80 points from its last weekend's close of 4,870.10 points.
A sharp hike of about 10 per cent in fuel price has raised possibility of a further surge in inflation to a double digit in the near future, analysts said.
Inflation jumped to 8.24 per cent for the week ended May 24 amid hints from the central bank about tightening of monetary measures.
During the week, the SEBI ruled out relaxation of restrictions imposed on participatory notes (PNs) last October. The decision has resulted in sustained FII pull out since January this year.
Foreign Institutional Investors (FIIs) sold shares worth Rs 18,660 crore so far in the current calendar year.
Global factors too were negative. World crude oil prices remained above 128 dollars a barrel in the week while stock markets continued to be under pressure from lingering US mortgage problems.