The Bombay Stock Exchange benchmark Sensex today slumped below 18,000 mark to its lowest in over six weeks, shedding 169 points as funds sold banking, auto and heavy machinery stocks due to worries over a slowing domestic growth amid a weak global trend.
The BSE 30-scrip index, which had lost 204 points in the last run, touched the intraday low of 17,859.50 before closing 169.34 points down at 17,940.55, a level last seen on June 16.
RIL and Infosys were down by 1.19 per cent and 0.76 per cent, respectively. ICICI Bank and HDFC Bank fell on concerns over sticky inflation and rising interest rates which might dent their revenue on fall in loan demand.
Interest rate-sensitive auto and realty stocks also suffered losses on concerns over rising borrowing costs.
Brokers said trading sentiment turned bearish after telecom major Bharti Airtel posted poor results for the first quarter of this fiscal and the Prime Minister’s Economic Advisory Council lowered the country’s yearly growth forecast to 8.2 per cent from 9 per cent.
Sentiment at home was also influenced by a weak Asian market and lower opening of European stocks on sovereign debt worries after it emerged that Italy had approached the European Union to settle a potential debt crisis at home after yields on Italian bonds touched the highest in euro history.
US data showing decline in consumer spending in June further dampened the sentiment.
Similarly, the broad-based National Stock Exchange index Nifty dropped below 5,400 level before ending down by 51.75 points at 5,404.80.