Weak Re, growth concerns drag Sensex down by 245 pts

The BSE benchmark Sensex today plunged by 245 points, extending losses for the fifth straight session, on heavy selling in oil&gas, power, PSU and auto stocks after RBI lowered its GDP forecast and kept interest rates unchanged, amid rupee again falling below the 60-mark.

With almost six out of ten stocks ending up as losers on the BSE, wiping out Rs 1.1 lakh crore in investor wealth. 12 out of 13 sectoral indices closed down amid hectic selling.
After a better start, Sensex tumbled by 244.94 poins, or 1.25 per cent to end at a nearly three-week low of 19,348.34. The gauge has now lost over 950 points in five days.
Similarly, the broad-based National Stock Exchange index Nifty dipped below of crucial 5,800 level to end with a loss of 76.60 points, or 1.31 per cent, at 5,755.05. Also, SX40 index, the flagship index of MCX-SX, closed 139.03 points down, or 1.19 per cent, at 11,556.55.

"The buying interest seen after the RBI policy turned out to be a rather trap zone because markets dived down for rest of the day. The selling was broad based with Oil & Gas firms getting badly impacted due to more than 1.5 per cent rise in USD/INR. RBI did not announce any major steps to control rupee," said Nagji K Rita, CMD, Inventure Growth & Securities.

Brokers said the RBI projections of a lower GDP growth at 5.5 per cent from earlier estimates of 5.7 per cent for the current fiscal in its quarterly monetary policy, also dampened the trading sentiment.

Rupee fell below 60-level to a dollar after around three weeks and was last trading at 60.36, down 1.59 per cent.

In 30-share Sensex pack, 22 stocks closed with losses led by Reliance Industries, Hindalco Industries, GAIL India, Bharti Airtel, Bajaj Auto, ONGC, State Bank of India, ICICI Bank, HDFC Bank, BHEL and Hindustan Unilever.

Oil and gas sector index suffered the most falling 3.89 per cent, followed by Realty index down 3.60 per cent, Power index by 3.35 per cent and auto index by 2.05 per cent.
"Amongst major earnings, Dr Reddy's results disappointed with profits. NTPC too disappointed with revenue down inspite of lower fuel costs," said Bonanza Portfolio Associate Fund Manager Hiren Dhakan.