Sensex down to two-year low, closes below 10K

Sensex down to two-year low, closes below 10K


Mumbai: The benchmark Sensex today tumbled to below 10,000-point level for the second time in five days as sustained selling continued on fears of credit crisis deepening and grim outlook for the domestic corporates.

With foreign funds as the top net sellers, the Sensex, which has breached 10,000-point level twice in the past five days, tumbled by 398.20 points, or 3.92% to 9,771.70, a level last seen on 20 June, 2006. The key index hovered between the day’s low of 9,681.28 and the high of 10,260.55.

The wide-based National Stock Exchange index Nifty also saw a drop of 122 points to close at 2,943.15 after touching an intra-day low of 2,917.15 as concerned over a slower growth for corporates, fence-sitters are on a fresh selling spree.

Also adding to the bearish sentiment due to global trouble was Prime Minister Manmohan Singh’s statement yesterday that said the country could face a ‘temporary slowdown´ from ‘the ripple effects´ of the global financial crisis.

The market major and trend-setter Reliance Industries, tumbled by Rs100.30, or 7.62% at Rs1,215.25, its lowest since December 2006.

The second largest heavy-weight on the Sensex, Infosys Technologies dropped by Rs17.60, 1.35% to Rs1,282.75. The two carry nearly 23% weightage on the index.

Metal Index suffered the most by losing 622.53 points, or 11.08% at 4,996.92, followed by Auto Index by 215.37 points, or 7.21% at 2769.79.