The Hindu Business Line : Sensex down 118 pts; Reliance loses over 3%

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Monday lost over 110 points to close below 17,000-point level on brisk selling due to a steep fall on Dubai bourses, signaling that worries of debt crisis are persisting.

Extending the losses for the second day in a row, the Sensex declined by 118.40 points to end the day at 16,983.14. The market was down by 84 points on Friday. Metal and realty counters came under severe selling pressure.

Market had regained the 17,000-level early last week after a rally sparked by India’s stunning economic growth of 7.9 per cent in the second quarter. But it was mainly remained range-bound in the absence of global or domestic triggers for rest of the wee k.

The wide-based National Stock Exchange index Nifty also dropped 42.20 points to close at 5,066.70.

Dubai state investment holding company Dubai World on November 27 seeking for extension till May next year for repayment of debts totaling $59 billion had spooked investor confidence worldwide. Global exchanges, including Indian bourses, fell sharply, er oding value of shares following the debt crisis.

Brokers said the sentiment turned bearish on reports of Dubai market tumbling again today, ahead of the Dubai World meeting with the creditors during the day. Lower opening in Europe further fuelled the selling pressure.

Besides metal and realty, sectoral indices of which lost 3.29 per cent and 2.44 per cent respectively, oil and gas, auto shares were also under pressure. - PTI

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