Sensex cracks 17k level on inflation worries

Mumbai, Dec 15 (PTI) The Bombay Stock Exchange benchmark
Sensex erased the early gains and fell for the second straight
day Tuesday to close below the psychological 17,000-mark,
shedding over 220 points, as rising inflation triggered
concerns that the Reserve Bank of India (RBI) may start
tightening liquidity soon.

The Sensex, which had lost over 21 points Monday, tumbled
220.39 points to settle at 16,877.16 points. It touched the
day's low of 16,835.78 and a high of 17,200.47 points.
Similarly, the wide-based National Stock Exchange's
Nifty moved between 5,129.45 and 5,018.25 points before ending
at 5,033.05, showing a hefty fall of 72.65 points.
Though selling pressure was visible across the sectors, it
was more pronounced on the banking and financial sector
counters as funds and investors feared that the Reserve Bank
may tighten the monetary policy next month to contain rising
inflation.
The banking index suffered the most by losing 2.95 per
cent close at 9,696.95 points with the biggest lender State
Bank falling by Rs 67.55 to Rs 2,180.75, HDFC Bank by Rs 57.50
to Rs 1,698.60 and ICICI Bank by Rs 25.05 to Rs 825.35.
The Sensex heavyweight Reliance Industries also shed Rs
15 to close at Rs 1,051.35. All these four stocks carry nearly
25 per cent weight on the Sensex.
Among the 30 Sensex counters, 24 gained and 6 dropped, led
by banking and finance companies counters.
A weak Asian trend and lower opening in Europe further
fuelled the down-trend. PTI RS
RDM


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