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Smart gains by equity markets abroad and higher industrial output in June failed to lift the domestic market sentiment. The BSE Sensex sank 220 points to below 17,000 level today.
The Bombay Stock Exchange 30-share index, Sensex, which started on an upbeat note with gains of 1.1 per cent, dropped 219.77 points or 1.29 per cent to 16,839.63 as investors sold rate-sensitive stocks on fears of an imminent rate hike due to persistently high inflation.
The gauge fell for the eighth time in nine days even as the industrial growth in June rose to 8.8 per cent, which the Finance Minister, Mr Pranab Mukherjee, said was “encouraging’’.
Massive selling in IT, Teck, Bank, Realty, Power and Metal sectors led to the downtrend. RIL was down 1.63 per cent, Infosys 2.64 per cent, HDFC Bank 2.32 per cent and Tata Motors fell 5.26 per cent. These heavyweights contributed the most to the Sensex fall.
Traders added jittery investors preferred to lighten their positions ahead of a long week-end amid uncertainty in global economic recovery with the riots sweeping across Britain and the deepening of EU debt crisis.
Similarly, the broad-based National Stock Exchange index Nifty fell 65.35 points or 1.27 per cent to 5,072.95, after rising to 5,194.45 in the opening session.
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