Sensex plunges 301 pts on downbeat data; banks lead fall

Market benchmark Sensex plummeted by 300.65 points to 25,489.57 today as investors feared Reserve Bank would keep interest rates on hold after inflation jumped in April and equity inflows would take a hit if regulator Sebi tightens P-Notes norms.

Domestic shares, however, logged their first weekly gain in three on earnings results, which were in line with market expectations so far, as Sensex rose 261.07 points or 1.03 per cent and Nifty climbed 81.45 points or 1.05 per cent.

The week ended on a negative note as two macroeconomic data raised the prospects that RBI would keep interest rates on hold, sending banking stocks, SBI, ICICI Bank, Axis Bank and HDFC Bank sharply lower.

Country's industrial production plunged to 0.1 per cent in March while retail inflation jumped to 5.39 per cent in April, government data showed yesterday.

Meanwhile, acting upon recommendations of the Special Investigation Team on black money, Sebi plans to tighten due diligence requirements for issuance and transfer of P-Notes and put the onus on investors to ensure compliance with anti-money laundering law.

Selling was also seen in Asian and European markets as oil snapped a three-day rally as concerns lingered over global growth prospects.

The BSE Sensex stayed in the negative zone through out the day and touched a low of 25,400.27 before winding up 300.65 points or 1.17 per cent down at 25,489.57, its weakest closing since May 6.

The 50-issue Nifty broke below the 7,900-mark by plunging 85.50 points or 1.08 per cent to close at 7,814.90. Intra-day, it hovered between 7,784.20 and 7,881.00.
Out of the 30-share Sensex, 27 scrips ended lower.

Major laggards included BHEL, HDFC, Tata Steel, L&T, GAIL, Bharti Airtel, Lupin, Hero MotoCorp, TCS, M&M, RIL, ONGC, Bajaj Auto and Sun Pharma.

Among the BSE sectoral indices, realty fell the most by 2.07 per cent followed by metal 2.04 per cent, capital goods 1.57 per cent, consumer durables 1.43 per cent, banking 1.25 per cent, auto 0.96 per cent and oil&gas 0.86 per cent.

Broader markets too showed a downward trend as mid-cap and small-cap indices fell by 0.58 per cent and 0.25 per cent, respectively.

Overseas, key indices in China, Hong Kong, Japan and Singapore slipped between 0.31 per cent and 1.41 per cent.

European markets were also lower with key indexes in France and the UK down by up to 0.63 per cent.