Sensex tumbles 275 pts on growth concerns, weak Asian cues

Sensex tumbles 275 pts on growth concerns, weak Asian cues

Sensex tumbles 275 pts on growth concerns, weak Asian cues

Stock markets tumbled for the second day in a row today with the BSE Sensex losing another 275 points to reach 16,213.46 amid the government lowering GDP growth forecast and weak Asian markets as concerns persisted over the euro-zone debt crisis.

Citing global and domestic factors, the government today lowered the GDP growth forecast for the current fiscal to 7.5 per cent from 9 per cent.

Finance Minister Pranab Mukherjee said that surging food and fuel prices as well as weak global economic growth are adversely impacting GDP growth.

The government also said it will not be easy to restrict the fiscal deficit to 4.6 per cent in 2011-12 on account of uncertainty on the disinvestment front and a likely increase in subsidies.

The sell-off was so strong that all the 13 sectoral indices fell by up to 2.58 per cent. Capital Goods, Auto, Refinery, Power, Realty, FMCG and banking sectors came under heavy selling pressure.

The BSE 30-share index, Sensex opened lower and dropped further to 16,142.32 before ending at 16,213.46 -- down 274.78 points or 1.67 per cent. Yesterday, it had tumbled nearly 389 points or 2.30 per cent. Thus, it has recorded the biggest 2-day fall since September 23.

The NSE 50-share Nifty also dropped 76.95 points or 1.56 per cent to close at 4,866.70.
Asian markets ended lower on persisting worries over the euro-zone debt crisis. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan fell by up to 2.73 per cent.

European stocks were marginally up after opening lower.

"Selling pressure was seen across the Asian markets as the European leaders failed to agree on a treaty change to help fight euro-zone debt crisis.

"Capital goods and infrastructure stocks witnessed considerable selling pressure on the back of expected slowdown in economic growth," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.

In all, 25 of the 30 Sensex scrips ended with losses.

Major losers were Jaiprakash Associates (4.67 per cent), M&M (3.62 pc), BHEL (3.45 pc), Bajaj Auto (3.36 pc), Sterlite (3.20 pc), Tata Motors (3.07 pc), RIL (3.05 pc), Tata Power (3 pc), Larsen (2.85 pc), HDFC (2.53 pc), Wipro (2.48 pc), Bharti Airtel (1.99 pc), ONGC (1.91 pc), HUL (1.77 pc), ICICI Bank (1.69 pc), HDFC Bank (1.63 pc), Tata Steel (1.37 pc) and Sun Pharma (1.22 pc).

However, Coal India rose by 1.10 per cent, followed by Maruti Suzuki - 1.08 pc and Hindalco - 1 pc.

Among the sectoral indices, BSE-Capital Goods fell 2.58 pc, followed by Auto - 2.26 pc, Oil&Gas - 2.04 pc, Power - 1.80 pc, Realty - 1.31 pc, FMCG - 1.22 pc and Bankex - 1.07pc.

The total market breadth on the BSE remained negative as 1,648 stocks ended with losses while 1,040 stocks finished with gains. The total turnover dropped further to Rs 1,897.66 crore from Rs 1,995.04 crore yesterday.