Date:12/07/2008 URL: http://www.thehindu.com/2008/07/12/stories/2008071255911800.htm

Business

Sensex tumbles on poor industrial growth

MUMBAI: After staying pretty close to the 14,000 level in the past two days, the Sensex plunged by over 450 points on Friday as the markets sharply reacted to rise in inflation and abysmal industrial growth.

After a promising start, the 30-share BSE index lost 456.39 points to 13,469. The key index touched a low of 13351.34 after hitting a high of 14066.36. The National Stock Exchange index, Nifty, also dropped 113.20 points to 4049. Marketmen said stocks plummeted after the industrial output data showed 3.8 per cent growth in May against 10.6 per cent a year-ago. Foreign investors, who bought a record $17.2 billion of Indian stocks last year, are now fleeing Asia’s third largest economy. Markets were also not really enthused by first quarter results of Infosys.

Rupee at 42.88

Surging for the fourth straight day, the Indian rupee breached the crucial 43-mark to close at 42.87/88 against the dollar, a gain of 12 paise amid alternate bouts of dollar buying and selling. At the interbank foreign exchange market, the local unit fluctuated in range of 43.05 and 42.72 after resuming weak at 43.02/04 a dollar. — PTI