Sensex drops 300 points on Tuesday
Breaking its three-day rising streak, the BSE Sensex Tuesday fell over 300 points on heavy selling by market participants, in step with a global selloff despite strengthening rupee and easing crude prices. Besides, profit-booking in recent gainers too fuelled the downward trend.
Sentiment took a hit on weakness in other Asian and European markets following overnight losses at the Wall Street as technology firms lost on worries over slackening demand, brokers said.
They said, the outcome of the Reserve Bank board’s meet also failed to impress investors.
The 30-share Sensex, after starting off lower at 35,730.77, continued to slide as selling pressure picked up momentum and hit a low of 35,416.18, before settling 300.37 points, or 0.84 per cent, down at 35,474.51.
The index had risen 633 points in the last two sessions on the back of increased foreign fund inflows.
The 50-share NSE Nifty too dropped by 107.20 points, or 1 per cent, to 10,656.20. Intra-day, it traded between 10,640.85 and 10,740.85.
The rupee continued its rising spree for the sixth straight day and strengthened by another 20 paise to trade at nearly three-month high of 71.47 against the dollar in late afternoon trade after the outcome from Monday's RBI board's meet removed uncertainty over a growing rift over policy decisions between the government and the central bank.
