Sensex hits 6-week low;falls for 5th session, shedding 468 pts

Mumbai, Jan 10 (PTI) Stock markets in India fell for the
fifth straight session on Monday, with the BSE benchmark
Sensex losing nearly 468 points to close at 6-week low on
continued selling by edgy investors, ahead of third quarter
corporate results and weak global cues.
The key index has plummeted by a whopping 1,337 points or
6.5 per cent in five straight sessions.
The Bombay Stock Exchange index Sensex trimmed its early
gains, and tanked by 467.69 points or 2.38 per cent to close
at 19,224.12 -- the level last seen on November 26, 2010.
Intra-day, it had fallen 533 points as investors
continued to be bogged down by fears of interest rate hike
coupled with negative show of global peers.
Similarly, the National Stock Exchange's wide-based Nifty
also extended losses with a fall of 141.75 points or 2.40 per
cent to finish the day at 5,762.85.
Market observers called the bearish mood in the street
'expected', as the retail investors and FIIs are pulling out
money in view of fears that the Reserve Bank of India will
increase interest rates to curb surging inflation and have
become cautious ahead of third quarter numbers.
"Street is facing panic selling by jittery investors as
they are nervous that the increased cost due to rising
inflation might result in lower profits for the corporates in
the third quarter. Besides, weakness in the overseas markets
is also dampening the sentiment back home," CNI Research CMD
Kishore P Ostwal said.
Selling pressure continued in the interest-rate sensitive
banking, realty and auto shares.
Banking stocks declined on concerns that higher deposits
rates may impact net interest margins of banks, thereby
hurting profitability. Top lenders HDFC Bank and ICICI Bank
fell by 5 per cent and 3.22 per cent.
All the 13 sectoral indices ended the day in a negative
terrain, with realty and capital goods sectors the worst hit.
Realty index saw a dip of 94.66 points to close at 2,570.94,
while capital goods index plummeted by 516.35 points to settle
at 14,165.33.
Heavy-weight capital goods giant Larsen & Toubro slumped
by 3.53 per cent while realty majors JP Associates and DLF saw
a dip of 4.18 per cent and 3.33 per cent respectively.
Of the 30-Sensex counters, only IT bellwether Infosys
Technologies and the telecom major Bharti Airtel defied the
fall in the broader market, with a gain of 0.90 per cent and
0.04 per cent.
"Infosys Technologies is attracting fresh buying as the
investors are expecting smart third quarter numbers from the
company," said an expert.
A plunge of 3.18 per cent in the India's most valued
firm Reliance Industries weighed heavily on the tumbling
street.