The BSE Sensex dipped for the third day in a row on Thursday to a 5-week low of 18,210 — down 223 points — on heavy selling in blue chips led by heavyweight RIL, as investors settled July derivative contracts amid weak global markets and lack of FII support.
In three straight sessions, Sensex has tumbled by 661.71 points or 3.51 per cent.
Brokers said debt crisis in the U.S. and weak economic data posted by it dampened investor sentiment, and FIIs failed to support Indian stocks against the backdrop of sharp hike in RBI key interest rates to tame overall inflation.
Foreign funds ignored the sharp dip in food inflation to 20-month low of 7.33 per cent for the week ended July 16.
Reliance Industries Ltd (RIL), with heaviest weight in Sensex, fell 2.71 per cent and was the major contributor to the fall. Besides RIL, HDFC Bank, Infosys Tech, HDFC, SBI, TCS, L&T, ICICI Bank, Jindal Steel, Tata Steel, Sterlite Ind and Hindalco together contributed over 200 points to the fall.
Metals, realty, refinery, IT and Banking — all suffered sharp setbacks.
The Bombay Stock Exchange 30-share barometer resumed sharply lower and remained in the negative terrain throughout the day to settle at 18,209.52, level not seen since June 23, a net fall of 222.73 points or 1.21 per cent.
The broad-based NSE 50-issue Nifty also plunged 59.05 points or 1.06 per cent to end below the 5,500-mark, first time since June 24 at 5,487.75.
