Sensex ends down 191 points

The National Stock Exchange’s headline Nifty 50 also lost 1.15 per cent to 5,251.40 points.

Marketmen said investor sentiment turned bearish after reports that China manufacturing slowed down in June. The Sensex opened weak and remained subdued throughout the day on poor Asian cues,they added.

“Investors are worried about the pace of global economic recovery. Traders preferred to take profit at current higher level as concerns over slowdown in the Chinese economy lingered,” Bonanza Portfolio Assistant Vice President Avinash Gupta said.

Across-the-board selling received a further drubbing after European bourses declined in their opening trade,following Moody’s warning that it may downgrade Spain’s debt. Brokers said that food inflation declining and May exports jumping helped cushion the fall in stock markets.

Food inflation dropped sharply to 12.92 per cent for the week ended June 19 from 16.90 per cent in the previous week.

India’s exports rose 35.1 per cent in May to USD 16.1 billion.

Metal stocks suffered the worst on the slowdown in China,the biggest consumer. Sterlite Industries retreated 3.18 per cent,the most in Sensex scrips,Tata Steel 2.20 per cent,Jindal Steel 1.66 per cent and Hindalco 1.04 per cent.

Analysts attributed the fall in metal stocks to worries over slowdown in China.

Fears of a rate hike also lingered on,bringing down banking stocks. ICICI Bank sank 2.39 per cent to Rs 841.40,SBI 1.75 per cent,HDFC Bank 0.39 per cent and HDFC 0.87 per cent.

Reliance Industries Ltd,which holds the maximum weight on the Sensex,lost about 1 per cent to Rs 1,076.15.

Barring consumer durables and FMCG,all sectoral indices on the BSE ended in red with metal,auto,realty and IT stocks leading the fall.

IT bellwether Infosys declined 0.75 per cent,TCS 2.64 per cent and Wipro 2.51 per cent.