Sensex extremely volatile; opens 400 points down

Mumbai, May 31: The mood at the bourses has been shattered once again by weak global markets and dismal performance of metals, auto, banking and cement scrips leading to 400 points fall in the opening move.

At 1021 hrs BSE Sensitive Index was 390 points, at 10,396. It struck a low of 10,389.38.

At 1230 hrs the sensex was trading at 10257.50 showing a loss of 528 points from the previous close None of the Sensex's constituents traded in the positive zone.

The Indian rupee fell to a 20-month low against the US dollar on Wednesday, on dollar demand from custodial banks on behalf of foreign investors pulling out from the stock market.

Amongst the major losers in the metal shares, Nalco lost 4 per cent to Rs 228, Hindalco lost 5 per cent to Rs 176, Sterlite Industries lost 4.6 per cent to Rs 418 and Hindustan Zinc lost 5 per cent to Rs 699.05.

Experts believe the cement shares have declined following the onset of monsoon in Mumbai. UltraTech Cement lost 5 per cent to Rs 596, Gujarat Ambuja Cements shed 3.8 per cent to Rs 91.55, ACC shed 3.8 per cent to Rs 749 and Grasim shed 3.6 per cent to Rs 1,807.

Construction activity has slowed down during monsoon, which in turn has affected cement demand.

Auto shares declined for the second day in a row. Car major Maruti Udyog lost 5 per cent to Rs 727.50, Hero Honda shed 5 per cent to Rs 762, Bajaj Auto lost 4 per cent to Rs 2,710 and Tata Motors lost 3.7 per cent to Rs 758.

Index heavyweight Reliance Industries was down 2.4 per cent to Rs 932 and another index heavyweight Infosys shed 3 per cent to Rs 2,932.

UNI