U.S. debt tensions and weaker-than- expected U.S. economic data overnight pulled down the BSE benchmark Sensex by another 195 points in early trade amid concerns at home over rising loan interest rates.

The 30-share Bombay Stock Exchange barometer resumed lower at 18,300.55 and dropped further to a one-month low of 18,221.46 before quoting at 18,237.62 at 1015 hours, translating into a net loss of 194.63 points, or 1.06 per cent, from its last close.

The NSE’s 50-share Nifty index also fell by 68.45 points, or 1.23 per cent, to 5,478.35 at 1015 hours.

All the sectoral indices on BSE were in the red. Index heavyweight Reliance Industries extended the recent losses triggered by its weak Q1 operating performance. ONGC and Hindustan Unilever dropped ahead of their Q1 results today. IT stocks fell on weaker-than-expected U.S. economic data.

The major losers were Wipro (down 2.77 per cent), Hindalco Ind (2.17 per cent), Sterlite Industries (2.17 per cent), Infosys (2.05 per cent), TCS (2.02 per cent), Reliance Infrastructure (1.98 per cent), NTPC (1.97 per cent) and Reliance Industries (1.88 per cent).

Volatility is likely to be seen in today’s session as traders roll over positions in the derivatives segment from the near-month July, 2011, series to the August, 2011, series.

The near-month July, 2011, derivatives contracts expire today.

Meanwhile, Asian stocks fell in early trade on U.S. debt tensions and weaker-than-expected U.S. economic data. The key benchmark indices in Singapore, Indonesia, China Japan, Hong Kong and Taiwan fell by between 0.49 per cent and 1.24 per cent.

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