Home Economy Sensex tumbles 454 points on panic selling

Sensex tumbles 454 points on panic selling

By IANS,

Mumbai : Indian stock market benchmark indices breached psychological support levels Thursday with benchmark Sensex plunging 454 points, the sharpest fall in six months, as investors dumped shares in panic on speculation of stock-rigging and widening graft probes.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), closed 2.31 percent or 454.12 points down at 19,242.36 points.

The benchmark Sensex, which opened in the positive at 19,746.15 points, slumped to a low of 19,160.87 points in the intra-day trade mainly because of intensified selling pressure in the afternoon. The Sensex touched a high of 19,771.09 points in the intra-day trade.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty slipped below an important psychological support level of 5,800 points mark. The index ended at 5,766.50 points, down 2.32 percent or 137.20 points.

All sectoral indices closed deep in the red. The BSE smallcap index plunged nearly six percent and the BSE midcap index shed 4.24 percent.

The sell-off intensified in the afternoon speculation of stock-rigging activities in certain scrips. Widening investigations into the mobile-phone licences allocation scandal has also hit investors’ sentiments.

The country’s largest lender State Bank of India slumped to nearly four-month low. The scrip tumbled nearly five percent Thursday after losing over two percent on the previous day. The scrip has dropped for the sixth consecutive session.

Reliance Infra 6.62 percent down at Rs.777.70; Reliance Comm 5.66 percent down at Rs.122.50; Hindalco Inds down 5.49 percent at Rs.209.85; Cipla 4.92 percent down at Rs.350.55; and Tata Motors 4.71 percent down at Rs.1,272.30 — these were among the major losers at the Sensex.

Of the 30 scrips that constitute the benchmark Sensex, only three advanced. Wipro, up 0.67 percent at Rs.436.90; Infosys, up 0.54 percent at Rs.3,151.55; and ITC, up 0.39 percent at Rs.167.40 were the only gainers at the Sensex.

However, most other Asian markets closed in the positive.

The Japanese Nikkei advanced 0.52 percent to 10,285.90 points. Hong Kong’s Hang Seng ended 0.34 percent higher at 23,171.80, while the Shanghai Composite Index closed 1.32 percent down at 2,810.95 points.