Stocks

Sensex tumbles 492 points on inflation concerns

PTI Mumbai | Updated on January 23, 2011 Published on January 07, 2011

Bearish mood: Traders look tensed even as shares fell on the BSE. Photo By Paul Noronha   -  Business Line

The BSE benchmark Sensex continued its slide and lost nearly 500 points to close below 20 K level today on concerns over sharp rise in food inflation and a weak trend on other Asian bourses.

The Sensex opened lower and steadily fell on heavy sellling in equities by traders and investors. Sectoral indices such as Metal, Auto, Consuer Durables, Telecom and IT, FMCG and Power lost over 2 per cent.

The Sensex fell by 492.93 points to close at 19,691.81. The Sensex had lost over 375 points in the past three trading sessions.

Similarly, the wide-based National Stock Exchange Nifty index has also moved down 143.65 points to end at 5,904.60 points.

Market analysts said sharp rise in food inflation to 18.32 per cent for the week ended December 25, 2010 and reports of weakening trend on other Asian bourses dampened the trading sentiment, triggering selling by funds and retail investors.

Stocks of capital goods, banking, auto and metal sectors in particular were under pressure and dragged the Sensex down.

Meanwhile, Hong Kong?s Hang Seng index was down by 0.14 per cent, while Japan’s Nikkei was trading 0.22 per cent lower in early trade today.

In the US, the Dow Jones Industrial Average ended 0.22 points lower in yesterday’s trade.

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Published on January 07, 2011
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