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GDP estimates cast shadow on markets, Sensex down 612 pts

GDP estimates cast shadow on markets, Sensex down 612 pts
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First Published: Thu, Feb 07 2008. 04 34 PM IST
Updated: Thu, Feb 07 2008. 04 34 PM IST
Mumbai: The Sensex nose-dived 612 points to close below 18K today on frantic selling by funds amidst reports of the country’s economic growth moderating this fiscal.
The 30-share Sensex, which tumbled by 524 points in the previous day’s trading, dropped further by 612.56 points at 17,526.93.
The index touched a low of 17,492.28 and a high of 18,198.68 points. In the 30-index stocks, only ACC remained higher on interested buying.
Brokers said selling pressure gathered momentum following the government announcement of the advance GDP estimates, which said India’s economic growth may moderate to 8.7% this fiscal due to slow growth in industrial output.
Industrial growth has been hit due to high interest rates.
The NSE Nifty plunged 189.30 points, or 3.56% at 5,133.25, after touching the day’s low of 5,113.85 and a high of 5,344.60 points.
The major pull to the market came in from oil and gas sectoral index, which fell 492.17 points, or 4.41% at 10,668.66, followed by metal index, which shed 660.62 points, or 4.08%, at 15,528.84.
Smallcap index tumbled by 210.18 points at 10,202.63 and midcap index by 189.62 points at 7781.12.
Afternoon update
Mumbai: The Bombay Stock Exchange Sensex plunged over 456 points at mid-session on 7 February on heavy selling by funds following reports that the Indian economy is likely to grow less than last year.
The Sensex, which had lost 524 points in previous day’s trading, tumbled by another 456.07 points at 17,683.42 at 1330 hours. The wide-based National Stock Exchange index Nifty also plunged by 148.85 points at 5,173.70 at the same time.
The government announced that the economy is likely to grow at a moderate rate of 8.7% during the current fiscal, against 9.6% in 2006-07.
Though the estimated growth rate is slightly higher than the RBI projection of 8.5%, the markets remained under pressure as the Indian growth report came in when the global market already fearing the rising concerns of inflation in the US.
Mumbai: The Bombay Stock Exchange benchmark Sensex fell 83 points in early trade on 7 February, on fresh selling by funds and retail investors, in line with weak global markets.
The 30-share index, which lost 524 points on 6 February, shed another 82.61 points to 18,056.88 in the first five minutes of trade as market participants sold shares mainly in bluechips like ONGC, Reliance Industries and Satyam.
Similarly, the wide-based National Stock Exchange fell by 27.35 points to 5,295.20.
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First Published: Thu, Feb 07 2008. 04 34 PM IST