The BSE Sensex dipped over 204 points to 5-week low of 18,109.89 today, amid the lowering of GDP growth forecast for this fiscal and fizzling out of the global relief rally after the US had averted debt default crisis.

Investor relief was replaced by concerns over weak economic recovery in the US, as well as globally, pulling down stocks markets the world over, analysts said.

Realty, metals, banking and IT stocks suffered the most, while Sensex heavyweights Infosys, ICICI, SBI and RCom closed with heavy losses.

Brokers said buying sentiment was hit by the lowering of economic growth projection to 8.2 per cent for 2011—12, from 9 per cent earlier, by the Prime Minister’s Economic Advisory Council (PMEAC) yesterday - citing uncertain global outlook, high domestic inflation and subdued industrial performance.

Besides, the global stocks dropped after Monday’s rally, as US manufacturing data showed signs of weak recovery. In Europe, there were renewed concerns over euro-zone debts.

The Bombay Stock Exchange 30-share barometer, which had gained over 117 points in the last session, opened lower at 18,283.55. It touched 18,037.87, before recovering somewhat to close at 18,109.89, down 204.44 or 1.12 per cent.

Similarly, the NSE 50-issue Nifty index declined 60.25 points or 1.09 per cent to 5,456.55.

“Yesterday witnessed positive momentum due to resolving of the US debt issue and today the market had a gap down opening on global negative sentiments due to slower US recovery and disappointing Chinese manufacturing data,” said Shanu Goel, Senior Research analyst at Bonanza Portfolio.

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