The Bombay Stock Exchange benchmark Sensex on Thursday slid 271 points on heavy selling by funds in blue-chips led by realty and metals amid weak global trend and rising inflation on the domestic front.
The Sensex closed lower by 271.10 points at 16,224.95. It recorded the day’s lowest level of 16,188.80 during intra—day trade.
Realty, metal and capital goods shares were battered.
The National Stock Exchange index Nifty also declined 86.50 points to 4,845.35.
Marketmen said a weak Asian trend and lower opening in Europe partly influenced trading sentiments.
Rising food inflation also weighed heavily on the sentiment. Inflation crossed 17.56 per cent for the week ended January 23 from 17.40 per cent.
Fear of NTPC’s FPO not living up to expectation also dented sentiments, brokers said.
Of the 30-BSE index-linked stocks, 27 fell while 3 ended with moderate gains. Reliance Industries and Infosy Technologies, the two heavy weights on the Sensex with 23 per cent weightage, fell by Rs 14.30 and Rs 47 to Rs 1,019.40 and Rs 2,423.20 respectively.
Software stocks too slid after a report showed the U.S. services industry expanded less than forecast. The IT index fell by 2.10 per cent to 4,917.98.
The realty index suffered the most by losing 3.89 per cent to 3,398.59 as Jaiprakash Associates, a builder of dams, roads and bridges, slumped to its lowest in three months after investors offered lower-than-expected prices for NTPC Ltd’s follow on public offer.
The metal sector index was the second worst performer, losing 3.36 per cent at 16,044.79 followed by auto sector index at 2.12 per cent at 6,941.36.
The banking index fell by 1.56 per cent at 9,506.11 on fears the rising inflation would force the RBI to raise borrowing costs. The SBI fell by Rs 48.85 at Rs 1,948.75, Housing Development Finance Corp by Rs 82.70 at Rs 2,427.25 and ICICI Bank by Rs 8.90 at Rs 829.30.