Sensex dips 371 pts on worry over interest rates

Mumbai, June 26: The BSE Sensex today slid 371 points to 10,042.06 on fresh apprehensions over the expected hike in Federal interest rates during the June 28-29 meeting of the US Federal Bank.

The recovery which was witnessed in the early trade as the Asian stock markets showed firm performance, however, declined as the metal indices slumped, inspired by the weakness on the London Metal Exchange (LME). The metal indices fell by 7.05 per cent to 7,884.29 points, even as Nalco, Telco, SAIL and Tata Steel were down between 1.5 to 7.0 per cent.

Earlier, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) opened in the green by 18 points over the previous close. However, the volatility soon stretched the index to touch an intra-day low of 9,991.12 points and a high of 10,451.47, a swing of 560.35 points.

All the sectoral indices closed in the red, other than metals.

The small cap index fell by 4.76 per cent to 5,346.26 points, capital goods by 4.58 per cent to 6,576.31 points, midcap by 4.26 per cent to 4,276.92 points, auto by 4.25 per cent to 4,469.53 points and PSU by 4.20 per cent to 4,469.53 points.

The major gainer on the index was HDFC Bank, which was up by 2.69 per cent to Rs 760.50.

Besides, the losers were - Tata Steel, down by 6.88 per cent; while Hindalco, Tata Motors, NTPC, HDFC, Ranbaxy Lab and Maruti Udyog were down between 5.0 to 7 per cent.

India today emerged the worst performing market, London's FTSE 100 index was up by 0.07 per cent. Key benchmark indices in Japan, South Korea, Taiwan and Singapore rose between 0.19 - 1.1 per cent, whereas Indian BSE Sensex lost by 3.56 per cent. Amongst the major losers, steel shares declined sharply after Mittal Steel on Sunday succeeded in taking over European steelmaker Arcelor, for euros 25.6 billion (USD 32.2 billion). Tata Steel plunged 6.88 per cent to Rs 495.75 and Hindalco went down 6.70 per cent to Rs 160.90. ' Pharma major Ranbaxy slipped 5.13 per cent to Rs 371.15.

Auto shares slipped on selling pressure. Car major Maruti Udyog lost 5.09 per cent to Rs 735.80, while Tata Motors shed 5.79 per cent to Rs 730.45.

IT shares succumbed to profit-taking. Satyam Computer lost 4.72 per cent to Rs 4.72 per cent to Rs 672.50, TCS shed four per cent to Rs 1,631, Infosys lost 3.4 per cent to Rs 2,886 and Wipro shed 1.7 per cent to Rs 467.

Housing finance major HDFC lost 5.18 per cent to Rs 1,046.25.

Cement shares, too, fell as Grasim plunged 6 per cent to Rs 1,750 and ACC lost 4.75 per cent to Rs 745.10.

The breadth in the broader market was in the favour of 1,530 declines as compared to 363 advances, out of total 1,928 shares traded on the BSE.

UNI