Sensex dips 204 points to 5-week low on growth worries

August 02, 2011 05:57 pm | Updated 05:58 pm IST - Mumbai

A file picture of Bombay Stock Exchange in Mumbai. Photo: Vivek Bendre.

A file picture of Bombay Stock Exchange in Mumbai. Photo: Vivek Bendre.

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.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.