Markets plunge, Sensex sheds 185 pts

Written by Agencies | Mumbai, August 27: | Updated: Aug 27 2008, 21:49pm hrs
Stock market barometer Sensex on Wednesday shed over 185 points on selling pressure that was partly fuelled by fears of higher inflation, even as crude oil prices climbed in the global markets .

The 30-share Sensex, which rose during the last two trading sessions, fell by 185.43 points to 14,296.79, after dipping to 14,261.69 and rising to 14,563.10 during the day.

Similarly, the wide-based National Stock Exchange index Nifty lost 45.40 points at 4292.10. It moved between 4282.65 and 4364.25 points during the day.

After a promising start, heavy-weight stocks fell as market participants indulged in unwinding their pending positions a day before the expiry of August month contract in the derivatives section.

Funds and other investors also reduced their holding in stocks, fearing a further rise in inflation, whose data is to be released tomorrow. WPI-based inflation was 12.63 per cent for the week ending August 9.

Melting global stock markets in view of a rise in crude oil prices in the international markets, raised inflationary concerns and eroded appeal of equities.

Realty sector suffered the most by losing 175.65 points at 4837.04 followed by banking index by 147.09 points at 6715.45, as any rise in inflation rate might affect housing sale and borrowing business.