The Bombay Stock Exchange 30-share barometer Sensex ended at 13,989.11, a net fall of 438.44 points or 3.04 per cent from Monday’s close of 14,427.55 as funds pressed the sell button to check losses in view of the political uncertainty. This is the lowest closing since May 15, 2007.
The Sensex initially slumped over US housing loan crisis and Yen carry trade. Brokers said the market was jittery on Tuesday on concerns about the possibility of Left parties withdrawing support to the UPA government if it went ahead with the Indo-US nuclear deal.
The broad-based S&P CNX Nifty of National Stock Exchange (NSE) also dipped by 134.15 points or 3.19 per cent to close at 4,074.90 from previous close of 4,209.05. A fresh onslaught of selling by hedge funds seemed the main cause of concern for domestic investors. Foreign Institutional Investors (FIIs) were heavy sellers during the session, market players said.