Markets down, Sensex sheds 94 pts

Markets down, Sensex sheds 94 pts

Mumbai: In alternate bouts of buying and selling, the Bombay Stock Exchange benchmark Sensex on Monday closed lower by over 90 points after dipping below 9,000 level during the day on selling-spree by funds, showing G-20 leaders pledge to revive economies had no impact on local bourses.

The BSE barometer closed down by 94.41 points at 9,291.01. With selling pressure intensifying, it even plunged by nearly 428 points to touch the intra-day low of 8,956.68 points.

The 30-share Sensex had slipped below 8,000 level at 7,697 points on 27 October last.

The National Stock Exchange index, Nifty, also fell by 10.80 points at 2,799.55.

Brokers said selling pressure intensified with investors forseeing economic outlook deteriorating as Japan joined the list of economies in recession. They said investors were also worried because the leaders of G-20 nations failed to produce concrete measures to tackle the global crisis.

At the G-20 summit on Saturday, Prime Minister Manmohan Singh warned that the financial meltdown has exploded into a systemic crisis, while world leaders called for a strong regulatory mechanism to bring transparency in financial system and stimulate growth to beat recession.

Marketmen said trading sentiment were dampened following rating agency JPMorgan’s cutting its forecast for India’s economic growth.

Realty sector index suffered the most by losing 5.17 % at 1907.51 with all the 14 components led by Sobha Developers and DLF ended in negative zone.

Banking sector index was second worst performer by losing 3.87% at 4956.04. Banking stocks such as ICICI Bank and HDFC Bank led the fall as investors fretted a weakening economy would raise defaults.