After recording its worst monthly show in January in two years, the BSE benchmark Sensex on Tuesday tanked another 305 points to close at a five-month low of 18,022.22 on heavy fund outflows over concerns that rising input costs, inflation and hike in interest rates will trim corporate earnings.
The selling pressure also gathered momentum on investor worries that unrest in Egypt could spread to other parts of the Middle East and make foreign funds more cautious.
The Bombay Stock Exchange benchmark Sensex, which had lost 825 points in last four trading sessions, fell further by 305.54 points to 18,022.22, a level last seen on August 30.
The fall was led by brisk selling of heavy-weight stocks in auto, realty and refinery sectors.
The gauge dipped below 18,000 points intra-day.
The Sensex has lost 14 per cent from a record level of November 5, the Diwali day. In January alone, it saw 10.63 per cent slump, worst performance since 2008.
Similarly, the broad-based National Stock Exchange index Nifty also fell below 5,500 points level by losing 88.70 points to 5,417.20.
Trading sentiment remained bearish on the first trading of February, as weak earnings by Maruti Suzuki fanned concerns that rising raw material prices of metals and rubber will pare the nation’s corporate earnings.
The refinery stocks led by the heaviest-weighted Reliance Industries dropped as rising world oil prices might further add to domestic inflation pressures, leading to further hike in interest rates.
