Sensex tanks 447.77 points on fuel price hike

Mumbai, June 4: The Sensex today slipped to its lowest level in two months, nosediving by 447.77 points to close at 15,514.79 on the Bombay Stock Exchange even as the Nifty plunged by 130.30 points to end at 4,585.60, on concerns over possible sharp rise in inflation rates after the fuel price hike.

The benchmark index plunged below the 15,500 level, lost 520.20 points to touch a day's low of 15,442.34 from its previous close of 15,962.56 on heavy selling pressure across the sector in late-afternoon trading session. The sensex has lost over 900 points in the last three days. Similarly, the broader based S&P CNX Nifty index of National Stock Exchagne lost 151.40 points to touch a low of 4,564.50, before finally ended the day with a loss of 2.53 per cent in late trade.

Expectation of further sharp rise in inflation rates after fuel price hike coupled with weak global cues created havoc on the Indian bourses. Stocks across the board were hammered with all sectoral indices on BSE ending in deep red, marketmen observed.

The Government today announced hike in petrol, diesel and LPG retail prices by Rs 5 per litre, Rs 3 per litre and Rs 50 per cylinder, respectively to be effective from mid-night today, in an move to curb mounting losses of state-owned refiners. However, the present hike would further accelerate the inflation rate and propel it to a level of atleast 13-months high, marketmen added.

The Cabinet has also agreed to cut the import duty on crude oil to support state run refining and retailing firms. Customs duty on crude was also reduced to nil from existing 5 per cent. The duty cuts would amount to Rs 22,660 crore in revenue loss, the Revenue Secretary said.

Amidst choppy trade, the market breadth was negative as out of 2,719 stocks traded, 1,967 declined, 676 advanced and 76 were unchanged today.
The BSE Midcap index plunged 2.29 per cent at 6,397.39, while Smallcap index tumbled 2.06 per cent at 7,720.26. Realty index dropped 5 per cent, Metal index declined 4.98 per cent, Power index ended down 4.42 per cent, Oil&gas index dropped 3.39 per cent and Bankex shed 2.53 per cent in the sharp fall today.

The turnover at BSE was quoted at Rs 5,551 crore against Rs 5,252.69 crore in the previous session. The NSE futures&options (F&O) segment turnover was Rs 48,378.31 crore, which was higher than Rs 40,448.71 crore a day before.

Reliance Industries (RIL) slumped 4.14pc to Rs 2,296.70, DLF shed 4.7pc to Rs 555.10, Reliance Power declined 7.31pc to Rs 202.80, Reliance Infrstructure was down 4.89pc to Rs 1070.10, Powergrid Corporation of India declined 2.97pc to Rs 88.30.

Realty stocks slumped badly. Lanco Infratech was down 12.27pc to Rs 416.50, Indiabulls Real Estate down 7.29pc to Rs 412.05 and Unitech down 5.52pc to Rs 207.20 to be in the top list of the losers.

State-run oil&gas stocks erased early gains to post losses despite fuel price hike. BPCL was down 7.84pc to Rs 324.05, off day's high of Rs 371.60, Indian Oil Corporation declined 3.61pc to Rs 418.20, off day's high of Rs 452.90, HPCL was down 2.9pc to Rs 241.40, off day's high of Rs 259.90.

UNI