Sensex tanks 230 points

The BSE barometer, which had lost nearly 527 points in the last three trading sessions, settled at 16.052.72 points, a loss of 230.77 points over the previous close. Earlier today, the 30-share index had dipped below crucial 16,000 points level. The wide-based NSE index Nifty dipped by 75.60 points to close at 4,750.55 points.
Brokers said that selling pressure gained momentum after investors off-loaded part of their holdings as inflation accelerated the most since May and exports declined by 14 per cent in September for the 12th month in a row.

Expiry of October month contracts in the derivatives segment and weak global trends also weighed on market sentiment, brokers said. Banking stocks continued to be the top losers on worries that their profits would be hurt after the RBI raised the provision ratio for bad debts in its credit policy review.
 Asian markets fell after after disappointing US housing data fuelled concerns about global growth. 

The BSE banking index dropped by 2.55 per cent to 9,290.23 points. The realty sector index suffered the most falling by 6.40 per cent to 3,820.46 points after Unitech dropped by 7.07 per cent to Rs 80.85 and DLF  by 6.81 per cent to Rs 375.60. The metal sector was second worst performer by losing 2.58 per cent to 13,904.73 points as Tata Steel fell by 3 per cent and Sterlite Industries by 1.96 per cent as copper prices lost 2.5 per cent on the Shanghai Exchange.
With the selling pressure spilling over a wide-front, the BSE midcap index fell 2 per cent to 6,046 points and the BSE smallcap index dropped   to 7,113.84 points.