The BSE Sensex tumbled 478 points to 3-week low of 17,445.75 today,as stock markets slipped hard on rising crude oil prices,igniting investor worries that it will fuel inflation and dampen chances of interest rate cuts.
Sensex logged steepest one-day fall in over 5-months,falling fourth day in a row — losing nearly 1,000 points and erasing Rs 24,000 crore in investor wealth in the process.
Global markets were weak as the Brent crude oil and the New York crude oil reached nearly 10-month highs of USD 125 a barrel on concerns over supply disruptions from Iran due to sanctions over its nuclear programme.
In all,12 of the 13 sectoral indices closed with losses of up to 5.29 per cent. Only BSE-FMCG index ended in the green because of rise in the ITC stock. Besides,28 of the 30 BSE Sensex scrips closed in the red.
Interest-rate sensitive banking and realty stocks led the declines on investor worries that oil price pressures on inflation could make it difficult for the Reserve Bank to lower key lending rates. India imports over 80 per cent of its crude oil requirements.
RIL and Infosys – with 20 per cent weight on the index — dropped 4.77 per cent and by 2.32 per cent.
Sensex touched a high of 17,975.19 on open but then started the downfall till the end to close at 17,445.75,losing 477.82 points or 2.67 per cent.
Similarly,the NSE 50-scrip index Nifty dropped 148.10 points,or 2.73 per cent to 5,281.20 as most of the front-runner stocks fell.
“There was bloodbath on Dalal Street with aggressive all-round selling. The sentiment has been dampened after Brent crude oil rallied to nearly 10-month high of USD 125 per barrel. Global markets declined as well on concerns over Greece debt crisis,” said Rikesh Parikh,VP Equities,Motilal Oswal Securities.