Sensex drops below 28,000-level, down by 328 points on sliding exports

Mumbai: The benchmark BSE Sensex tanked over 328 points to slip below the 28,000-level in early trade, as participants indulged in offloading positions amid exports contracted for the eighth straight month by 10.3 per cent in July to USD 23.13 billion. Besides, profit-booking by participants after recent gains and mixed trend at other Asian bourses, dampened sentiments.

The 30-share barometer slipped below the 28,000-mark by plunging 328.18 points or 1.16 per cent to 27,739.13 in early trade today. The gauge rose by 555.05 points in last two sessions. All the sectoral indices led by realty, capital goods and healtchare were trading in negative terrain with losses up to 2.14 per cent.

Also, the NSE Nifty dipped below the 8,500-mark by losing 90.50 points or 1.06 per cent to 8,428.05. Brokers said apart from profit-taking in recent gainers and a mixed trend at other Asian markets, India's exports contracted for the eighth straight month by 10.3 per cent in July to USD 23.13 billion, pushing the trade deficit to USD 12.81 billion, dampened sentiments. Bucking the trend, stocks of SBI rose 2.53 per cent, Bank of Baroda gained 12.69 per cent after the government unveiled a seven-point plan encompassing Rs 20,000 crore immediate fund infusion, to revive the fortunes of public sector banks.

In Asian markets, Hong Kong's Hang Seng was down by 1.04 per cent, while Japan's Nikkei up by 0.35 per cent in early trade today. The Dow Jones Industrial Average ended 0.40 per cent higher in Friday's trade.