The Bombay Stock Exchange sensitive index, Sensex plunged to a two-week low of 17196.47 on Thursday, down 405 points as investors sold stocks amid weakening rupee, official auditor CAG's report that the government caused huge losses to the exchequer in allocating coal blocks and shaky overseas markets.
Of the 30 Sensex scrips, 28 tumbled. All the 13 sectoral indices closed in the red, with realty, power, banking, capital goods, metal and refinery stocks being hit hard.
Market heavyweight Reliance Industries dropped by 4.15 per cent to Rs. 763.50 and Infosys by 1.39 per cent to Rs. 2,827. The two carry 20 per cent weight on the Sensex.
The rupee's sharp decline against the dollar to Rs. 51-level worried investors that it would inflate government's import bill, especially on account of oil, worsening fiscal deficit situation.
Besides, the Comptroller and Auditor General (CAG) said in a draft report that the government lost Rs. 10.67-lakh crore on account of allotment of coal blocks to 100 private and public sector companies without auction during 2004-09. However, the CAG later informed the Prime Minister that media reports on alleged coal scam were “exceedingly misleading”. — PTI