Sensex plunges below 10K mark

After hovering around 10k, the index hit a four-month low of 9,957.32 on renewed selling in the last 30 minutes.

india Updated: Jun 06, 2006 17:15 IST

A rush of selling by investors at the eleventh hour shaved off 256 points from the stock market, sending the barometer index toppling down to below 10,000 points level -- less than a month after touching a peak of 12,671.11.

The Bombay Stock Exchange benchmark Sensex overcame initial weakness and was hovering around the 10,000 points level, but renewed selling in the last 30 minutes of trading pushed the index to a four-month low of 9,957.32 - a net fall 256.16 points or 2.51 per cent from Monday's close.

This was the first since February 17 that it is closing below the 10K mark. It touched a high of 12,671.11 on May 11.

The NSE's S&P CNX Nifty also fell sharply by 79.35 points or 2.63 per cent to 2,937.10 from previous close of 3,016.65.

Earlier, the market had regained some lost ground after touching the day's low of 9,884.89 on fairly heavy purchases in the form of shortcovering in the Futures and Options segment after mid-session.

Investors were visibly confused over the dramatic crash at the fag end, during which the market witnessed a deluge of sell orders with buyers few and far between.

The world-wide gloom largely attributed to concerns over higher inflation, upward spiral in oil prices as also indications of further hikes in the US Federal rates compounded the negative sentiment across the sectors, market players said.

Key global indices suffered a sharp setback. The Dow Jones Industrial Average posted its third-largest decline of the year Monday as economic worries rattled investors.

Only three of 30-Sensex shares managed to buck the trend.

First Published: Jun 06, 2006 10:15 IST