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The Bombay Stock Exchange benchmark Sensex fell for the fifth straight session today to about 19,262, losing 189 points on sustained selling on slow growth in industrial production and a weak global trend amid high crude oil prices.
The Bombay Stock Exchange benchmark index, Sensex, which had lost nearly 250 points in the last four sessions, fell further by 188.91 points to 19,262.54, on sell-off in the stocks of realty, auto, consumer durables and refinery sectors.
The broad-based National Stock Exchange index Nifty fell by 56.30 points to close below the crucial 5,800 level at 5,785.70 in its longest losing streak in two months.
Trading sentiment dampened following reports that the industrial growth slowed down to 3.6 per cent in February compared with 15.1 per cent expansion in the year-ago period. It was dragged down by the poor performance of manufacturing and mining.
A weakening trend in Asia and lower opening in Europe further fuelled the downtrend. Most Asian stocks dropped as a rally in crude oil prices sparked concerns that high energy costs will slow down the global economic growth.
Surging crude oil prices increased the fears of further tightening of measures by the Reserve Bank of India to curb inflation and kept interest sensitive sectors under pressure.
The RBI has increased rates eight times since March 2010 to combat inflation, amid growing consumer demand and rising oil prices.
The realty sector index suffered the most by losing 2.52 per cent to 2,402.15 as any rise in interest rate would slow down the demand for homes, while auto index lost 2.15 per cent to 9,194.67.
Tata Motors dropped by Rs 25.70 to Rs 1,219.25, Mahindra and Mahindra lost Rs 17.70 to Rs 710.05 and Bajaj Auto fell by Rs 36.05 to Rs 1,377.80.
The oil and gas sector index lost 1.59 per cent to 9,928.18 as the sector major and most heaviest on the Sensex, Reliance Industries, lost Rs 17.10 to Rs 1,007.15.
The banking index fell by 0.72 per cent to 13,203.77 on fears that any further hike in interest rates would trim the borrowing business. HDFC Bank fell by Rs 55.85 to Rs 2,296.30 and HDFC by Rs 19.05 to Rs 690.10.
Investors were seen reducing the holdings ahead of a holiday tomorrow for ‘Ramnavmi’ and another holiday on April 14 for ’Dr Babasaheb Ambedkar Jayanti’.
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