Sensex down 204 pts to new low on growth worries
Besides, 25 of the 30 Sensex scrips ended the session in the red with L&T and BHEL hitting 52-week lows. Heavyweight Reliance Industries fell over 3 per cent. Initially, Sensex touched a high of 15,448.13 on mixed Asia markets. It then declined and fell sharply at the fag end to settle at 15,175.08 — down 204.26 points or 1.33 per cent.
Sensex has tumbled 827.52 points or 5.17 per cent in the past five sessions. Analysts said investors are concerned over the slowdown in the economy and the falling rupee, which has declined to Rs 53.03 per US dollar from Rs 45 a few months ago, making imports costly. Besides, overseas markets continue to be weak on persisting worries about the euro-zone debt troubles and slowdown in global growth environment.
"Indian equities market has witnessed continuous selling in the last few sessions. Moreover high inflation, lower than expected GDP growth have a negative sentiment in the market," said Parag Doctor, Associate VP, Motilal Oswal Securities. The government delay in policy implementation and higher fiscal deficit are major concerns in the market, he added. "The downtrend continued for yet another day, with heightened volatility. Interest rate sensitive sectors like banks, capital goods and realty continued to reel under pressure," said Shanu Goel, Sr Research Analyst at Bonanza Portfolio.