Sensex tumbles by 785.30 pts, Nifty skids below 5K

Mumbai, May 24: The benchmark index of the Bombay Stock Exchange plunged by 785.30 points or 4.5 per cent at 16,649.64 even as Nifty was down by 211.15 points or 4.09 per cent at 4,946.55 on surging global crude oil prices and inflation worries, in the week ended May 23. The Indian bourses suffered losses in the week on concerns over crude oil prices, which struck a record high of over USD 135 per barrel barrel and surging inflation, which may impact fund inflows into the country, marketmen observed.

The BSE Midcap index fell 192.59 points or 2.77 pc at 6,937.11 and Smallcap index dropped by 102.83 points or 1.19 pc at 8,517.43 during the week. Index heavyweights Reliance Industries declined 3.05 pc to Rs 2,554.80 in the week. It has reportedly formed a USD 1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.

Oil and Natural Gas Corporation (ONGC) shed 5.14pc to Rs 902.05 in the week. It is reportedly planning to sell 30pc to 40pc each in two blocks in Vietnam to share the risks and drilling costs. Maruti Suzuki India was down 3.52pc to Rs 790.15. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.

Larsen&Toubro declined 5.06pc to Rs 2,844.75 in the week. The company received electrical project orders worth Rs 640 crore in the Gulf region.

Country's largest lender State Bank of India slumped 7.67pc to Rs 1,573.20. The bank had resumed giving farm loans for tractors and farm equipment. HDFC Bank declined 7.92pc to Rs 1,383.35 in the week.

The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab with HDFC Bank. The scheme came into effect from May 23.

IT major Tata Consultancy Services (TCS) shed 4.35pc to Rs 933.70 in the week. It has reportedly won a contract, estimated to be worth more than Rs 1000 crore, for processing Indian passport applications.

Annual inflation based on the wholeprice index (WPI) was quoted at 7.82 per cent on May 10, 2008, marginally lower than 7.83 per cent in the previous week, government data released on May 23 showed.

UNI