The benchmark stock index Sensex plunged to an over 40-month low on Thursday on brisk selling by funds in blue-chips led by Reliance Industries and ICICI Bank on concerns that the RBI's interest rate cuts may not be enough to revive the slowing economy.
The benchmark stock index Sensex plunged to an over 40-month low on Thursday on brisk selling by funds in blue-chips led by Reliance Industries and ICICI Bank on concerns that the RBI's interest rate cuts may not be enough to revive the slowing economy.
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The Bombay Stock Exchange 30-stock Sensex recorded a loss of 248.57 points to 8,197.92, the lowest seen since November 2, 2005. It touched an intra-day low of 8,166.97.
The 50-share National Stock Exchange index Nifty plunged by 68.50 points to 2,576.70, after touching the day's low of 2,564.19 points.
Even as the Reserve Bank of India cut short-term lending and borrowing norms by 50 basis points, the measures failed to lift investor confidence and foreign funds sold on a gloomy outlook for the economy.
Selling pressure remained strong, and inflation declining to 2002 levels at 3.03 per cent could not revive sinking investor confidence.
Market sentiment turned bearish after the market-heaviest and trendsetter Reliance Industries dropped five per cent to Rs 1,149.10 and ICICI Bank, the second-biggest lender, slid 5.17 per cent to Rs 269.60.
Ranbaxy Laboratories, a member of the Sensex pack, slumped 9.27 per cent to Rs 144.40, the lowest in seven and a half years.
Hindustan Unilever, the biggest household products maker, plunged 4.50 per cent to Rs 230.05, the most in almost five years after JPMorgan Chase cut its stock rating.
The banking index fell the most, by 161.49 points, to 3,728.22 as all the 18 segment participants were down on fears the interest rate cuts may fail to arrest the slowdown.
The oil and gas index was the second-worst performer, losing 216.99 points to 5,625.26, followed by the power index by 54.41 points to 1,615.49.
The FMCG index fell by 63.49 points to 1,886.73, the capital goods index by 148.12 points to 5,476.75, the PSU index by 96.23 points to 4,718.26 and the metal index by 80.70 points to 4,466.25.
The healthcare index lost 40.28 points to 2,541.02, the teck index by 23.41 points to 1,638.81, the auto index by 28.33 points to 2,613.90, the IT by 21.77 points to 2,011.04 points and the realty index by 11.49 points to 1,358.93.
With selling pressure spreading over a wide front, the midcap index lost 45.25 points to 2,603.11 and the smallcap index by 54.16 points to 2,936.01.
However, the consumer durables index bucked the general weak trend and recorded a gain of 7.69 points to 1,482.18 on the back of a rise in stocks of Videocon Ind and Titan Ind.
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