Fading rate cut hopes, growth worries drag BSE Sensex 202 pts down
Falling for third straight day, the BSE benchmark Sensex today tumbled by 202.37 points to one-week low of 19,362.55 on heavy selling in banks, auto and consumer durable shares due to fading rate cut hopes and fresh growth concerns, amid a weakening global trend.
Besides rate-sensitive counters, shares from metal, IT, PSU and refinery sectors also were at the receiving end as 12 out of 13 sectoral indices ended lower.
The 30-share Sensex resumed weak and remained in negative throughout the day before closing at one-week low of 19,362.55 -- a fall of 202.37 points or 1.03 per cent. The 202.37-point loss is the worst fall this month. In the three-day losing
run, the index has plunged by 320.68 points or 1.63 per cent.
In Sensex, 22 stocks declined and six gained, while Sterlite Industries and Tata Power closed unchanged. Sectorally, the banking index suffered the most by losing
2.18 per cent to 13,515.54 as stocks of HDFC Bank, ICICI Bank, SBI and HDFC fell as interest rate hopes faded further.
The NSE 50-issue CNX Nifty also dipped by 62.90 points or 1.06 per cent to end below 5,900-mark at 1-week low of 5,851.20. Market participants were cautious ahead of WPI data release tomorrow, traders said.
Hopes of a rate cut by RBI on March 19 were dimmed after better-than-expected IIP data and rising retail inflation were released yesterday.
"Tomorrow inflation numbers are to be announced and market volatility is likely to continue. Global factors will have near term impact too on the indices," said Nidhi Sarswat,
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