Date:23/05/2008 URL: http://www.thehindu.com/2008/05/23/stories/2008052360402000.htm

Business

Sensex plunges by 336 points

MUMBAI: The Bombay Stock Exchange sensitive index plunged by 336 points on Thursday, as investors sold banking shares even as global markets fell the most in over a week on concerns that record oil prices and inflation might slow economic growth and reduce profitability of companies.

Crude oil broke through the $135 a barrel barrier in Asian trade, stoking fears of inflation.

Banking counters continued to bear the brunt of heavy selling, expecting more stringent measures by the Reserve Bank of India to stem rising inflation.

The BSE 30-share barometer resumed sharply lower at 17104.59 against Wednesday’s close of 17243.16 and dropped further to settle at 16907.11, a steep fall of 336.05 points.

Similarly, the 50-share Nifty of the National Stock Exchange also tumbled by 92.20 points to end at 5025.45.

Barring Nikkei, which landed in the positive terrain at close, other Asian indices closed lower on the back of steep fall on the Wall Street on Wednesday.

The sharp fall in rupee value, that breached the 43-level against the dollar, also was a cause for concern to marketmen.

Selling was so strong that besides Hindalco, other index-based shares registered sharp to moderate losses and all sectoral indices closed in the red. — PTI