Sensex down by 338 points

Tracking weak global trends, the Sensex on Thursday fell sharply by over 338 points.

Tracking weak global trends, the benchmark Sensex on Thursday fell sharply by over 338 points on relentless selling by funds, particularly in oil 038; gas and power counters.

The 30-share Sensex on the Bombay Stock Exchange, dropped 338.32 points at 14,324.29 on reports of the global markets falling to more than two-year low on concerns of credit market losses increasing and global economic growth declining.

The Indian rupee weakening to two-year low against the US currency also raised concerns of more capital outflows as some foreign funds indulged in reducing their portfolios.

The wide-based National Stock Exchange index Nifty also lost 109.95 points at 4,290.30, after dipping to 4272.75 and a high of 4399.30 points.

All the sectoral indices on BSE closed in the red. Oil and gas, power indices bore the maximum brunt of selling to close lower at 3.39 per cent and 2.97 per cent respectively.

Heaviest in the Sensex club Reliance Industries slipped below the Rs 2,000 level on heavy selling by foreign funds and retail investors. Bluechips BHEL, Larsen and Toubro and ICICI Bank also came under pressure bring down their sectoral indices.

Marketmen said trading sentiment turned weak on reports of Lehman Brothers Holdings posting a 3.9 billion dollar third quarter loss. They said Lehman8217;s losses further hiked fears of deepening credit crisis in the world8217;s biggest economy.

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Reliance Industries, which has been weak for the past two trading sessions, weakened further by Rs 85.95 at Rs 1997.60. ONGC stocks lost Rs 41.15 at Rs 1,035.45, Indian Oil Rs 11.70 at Rs 411.20 and Abban by Rs 30.10 at Rs 2320.20.

Power index was second worst performer and lost 78.82 points at 2,576.42 after Tata Power declined by Rs 37 at Rs 1,012.10. BHEL, another sector heavy, fell by Rs 46.40 at Rs 1664.75 on all round selling.

A sharp fall in the value of rupee fail to enthuse traders in IT stocks which generally gain strength on local currency8217;s weakness. Infosys fell by Rs 10.15 at Rs 1,749, Tata Consultancy lost Rs 15.05 at Rs 836.10 and Financial Technologies Rs 23.65 at Rs 1499.50.