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Sensex dips 277 pts, falls below 17k

Mumbai: The BSE Sensex fell 277 points to today to below 17k level at 16,748.29 as investors sold across-the-board, disappointed by the second quarter earnings reported by IT major TCS and weak markets globally.

TCS tumbled 7.71 per cent after posting, late yesterday, just 6.1 per cent growth in net profit for the July-September quarter. It pulled down IT stocks and BSE-IT index fell 3.67 per cent – the biggest loser among all sectoral indices.

The IT industry, which earns about 85 per cent of revenues from the US and the European markets, has been shaky amid concerns of a global economic slowdown. Other heavyweights such as RIL, ICICI Bank, Infosys, L&T, Tata Motors, ONGC, SBI, Tata Steel, Sterlite and ITC also bore the brunt of selling.

All the 13 sectoral indices closed in the red – down 3.67 per cent to 0.60 per cent, while 25 of the 30 scrips in Sensex closed in the red. NTPC held stable, while others made gains. Sensex opened weak on bearish Asian cues on slow growth in China and continuing euro-zone debt troubles. China`s GDP expanded slower at 9.1 per cent in the third quarter this year, down from 9.5 per cent in Q2 and 9.7 per cent in Q1.

Sensex remained in negative terrain throughout the day and settled at 16,748.29, down 276.80 points or 1.63 per cent. The NSE broad-based 50-issue Nifty also dipped 80.75 points or 1.58 per cent to 5,037.50.

"Chinese economy grew at slowest pace in 2 years which resulted in panic selling across Asian peers and more importantly, the metal counters," said Shanu Goel, Senior Research Analyst at Bonanza Portfolio. Besides, the below expected results by TCS, hurt investor sentiment really hard, she added.

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