stock market

Sensex tumbles 302 points on earnings concern, weak global cues

Stock brokers react while watching Bombay Stock Exchange index on their trading terminals in Mumbai. The Sensexfell by 302.31 points to 16,151.45 on Monday.

The Bombay Stock Exchange benchmark Sensex on Monday tumbled 302 points on heavy selling in blue-chips led by Reliance Industries and banking stocks on investor anxiety over corporate earnings amid depreciating rupee and weak global markets.

The Sensex, which lost 244 points in the previous session, fell further by 302.31 points to 16,151.45 on continued outflow of foreign funds.

A weak trend in the Asian region and lower openings in Europe also dampened the market sentiment, as Greece said it would not meet the target for reducing its massive deficit, adding to the pressure on the eurozone crisis.

The National Stock Exchange index Nifty dropped 93.75 points to 4,849.50, after touching the day’s low of 4,823.90.

Brokers said high inflation and rising commodity prices have added to fears of interest rate hikes. They said the country imports more than 75 per cent of its fuel demand, and buys commodities including pulses, edible oils, natural rubber and some grades of steel from overseas.

Thus, the weak rupee spurs the country’s import bill.

The rupee weakened one per cent to 49.49 per dollar after losing 8.7 per cent last quarter.

The two heaviest stocks, with 20 per cent weight on the index — Reliance Industries and Infosys — suffered heavy losses. RIL lost 2.49 per cent and Infosys 2.27 per cent. ICICI Bank fell 4.12 per cent, SBI 2.53 per cent and HDFC Bank by 1.88 per cent.

The realty sector index suffered the most, falling 4.59 per cent to 1,682.06, followed by metals index — 4 per cent to 10,555.54. The banking index lost 2.82 per cent to 10,544.72.