Sensex down 200 pts on profit-booking

Mumbai: The BSE benchmark Sensex fell by almost 200 points in opening trade todayy, dragged down by financial stocks amid fears of an RBI rate hike and profit-booking of gains recorded in the previous session.

The 30-share Sensex, which had gained 337.05 points in the previous session, fell by 199.99 points, or 1.17 per cent, to 16,885.35 in opening trade today. In a similar fashion, the wide-based National Stock Exchange Nifty Index shed 53.15 points, or 1.03 per cent, to 5,086.00.

Brokers said apart from profit-booking by participants after yesterday`s gains, expectations that the Reserve Bank of India may announce another hike in interest rates at its quarterly policy review on October 25 and Finance Minister Pranab Mukherjee`s statement that the global slowdown will impact the country`s growth prospects had a negative impact on the trading sentiment.

Meanwhile, in the Asia region, Hong Kong`s Hang Seng Index was down 0.61 per cent, while Japan`s Nikkei shed 0.80 per cent in morning trade today. The Dow Jones Industrial Average in the US closed 0.63 per cent lower on Wedenesday.