Sensex goes below 16K level as FIIs flee; RIL down 3 pc

The BSE 30-share index dropped 509.40 points in intra-day to trade below the 16,000-level. It finally settled the day at 16,022.48, down 447.02 points, or 2.71 per cent. The last time it closed at this level was on February 15.
The broad-based National Stock Exchange's 50-share Nifty index also plunged 2.78 per cent to close at 4.806.75 points.

Analysts said Spain's move to take over an ailing savings bank CajaSur gave rise to fresh fresh concerns over the Eurozone debt crisis and triggred a fall in world stocks.
"Spain's move to nationalise CajaSur and tension between South and North Korea have further weakened investor sentiment and the correction in market is likely to continue for coming sessions," CNI Research CMD Kishore P Ostwal said.

All the major indices globally were in the red. Asian bourses settled the day lower in the range of 2-3.7 per cent. Europe was trading in deep red, with Britain's FTSE 100 sinking nearly three per cent. Overnight, US indices also ended lower, with S&P 500 dropping 1.29 per cent.

"In domestic market, investors are already cautious ahead of Thursday's derivative settlement and in this situation any bad news from global markets can drag the indices," Ashika Stock Brokers Research Head Paras Bothra said.
Reliance Industries, which holds the maximum weight among Sensex scrips, lost 3.39 per cent to close at Rs 986.85.
In BSE-30, only Cipla managed to settle in green, whereas rest 29 ended in negative territory.

Reliance Communications plumbed 6.32 per cent, the biggest loser in the Sensex constituents. L&T retreated 4.28 per cent and Infosys 2.44 per cent.
All the 13 sectoral indices of BSE settled lower in the range of 1-5 per cent. Metal, consumer durables (CD), consumer goods, bankex and oil & gas led the fall.
Brokers said overseas institutional investors are selling shares persistently that has led the benchmark index to fall 9 per cent so far this year. In May only, FIIs sold shares worth Rs 7,606 crore.

Other loser in Sensex components, include SBI at 3.94 per cent, ICICI Bank 2.72 per cent, HDFC 2.11 per cent and ITC 2.80 per cent.
Among metals, Hindalco sank 5.43 per cent, Tata Steel by 4.45 per cent and Sterlite Industries 4.49 per cent.