By Agenc ies
Mumbai: It was all red in the stock market on 12 February as it made a weak start and witnessed immense pressure across all sectors as the day progressed.
When the markets closed Sensex was down 348.20 points or 2.39% at 14,190.7, and the Nifty down 129.10 points or 3.08% at 4,058.3. About 310 shares have advanced, 2,282 shares declined, and 25 shares are unchanged.
At noon the stock market benchmark Sensex dropped over 356 points at noon on heavy selling by funds and general investors concerned about the merger and acquisitions spree putting pressure on India Inc.’s financial health , besides fears of rising inflation.The Sensex tumbled by 356.56 points at 14,182.34 at 1200 hrs as almost all the 30 index shares lost substantial ground on frantic selling.
Similarly, the wide-based National Stock Exchange index Nifty plunged by 112.85 points at 4,074.55.Marketmen attributed the fall to concerns about rising debt of corporate India, which is in the midst of a takeover spree including Tata Steel’s Corus acquisition and Hindalco’s buyout of aluminium maker Novelis.
Shares of telecom major Reliance Communications also took a beating after it was outbid by UK’s Vodafone for a controlling stake in mobile company Hutch-Essar.All the three scrips are part of the Sensex and Nifty.
The Sensex tumbled by 296.19 points in the first one-hour of trade as almost all the 30 -share index lost substantial ground on frantic selling.Similarly, the wide-based National Stock Exchange index Nifty plunged by 97 points at 4,090.40.Traders said investors were unwinding their positions on rising inflation rate, which surged to 6.58% for the week ended January 27.They said banking stocks suffered the most on fears that inflation might go up further prompting measures that could result in increased interest rates.