Mumbai: Continuing its downward spiral, the benchmark BSE Sensex on May 7 tumbled by 118 points to settle at 26,599.11 - its lowest closing in 6-1/2 months - on rupee breaching 64-level, rising oil prices and MAT worries. The NSE Nifty also fell below the 8,000-level intra-day. Persistent selling by foreign investors over taxation worries, delay in passage of reform bills and disappointing earning numbers bogged down markets, traders said. Sentiment was also dampened as rupee breached 64-level to fall to a 20-month low, fading chances of a rate cut by the RBI at its meeting next month, they added.
Globally, markets were unsettled on a sell-off in government bonds, stocks and the dollar as well a increase in oil prices showed little sign of relenting. Weak show by Asian markets following downbeat closing on Wall Street had a negative rub off on markets here. "Concern over surging oil prices, rupee depreciation against the dollar and Greece are the key issues, which are spooking the markets.
Besides, participants are also cautious due to uncertainty over the GST bill," said Jayant Manglik, President of Retail distribution at Religare Securities. The 30-share Sensex fell 118.26 points or 0.44 per cent to close at 26,599.11, its weakest closing since October 21. The gauge shuttled between 26,423.99 and 26,850.37 intra-day. On May 6, it had collapsed by 722.77 points or 2.63 per cent. Today was the third-straight session of decline with the index having lost 891.48 points during this period.
The NSE Nifty index also ended with a loss of 39.70 points or 0.49 per cent at 8,057.30 - its weakest close since December 17. Intra-day, it dipped below the crucial 8,000-level to touch a low of 7,997.l5. Meanwhile, Sensex has retreated by 3,425.63 points or 11.40 per cent from record high of 30,024.74 reached on March 4, while Nifty plunged 1,061.90 points or 11.64 per cent from its record high of 9,119.20 touched on March 4.
Banking, realty, consumer durable, oil & gas, healthcare and auto stocks were at the receiving end. The broader markets remained under heavy selling pressure from cautious retail investors with the BSE midcap and smallcap indices falling by 1.95 and 1.68 per cent, respectively.
