Sensex tanks as investors sell in a hurry

MUMBAI, Oct 27: A benchmark index of the Indian equities markets nosedived on Tuesday to end about 2.3 percent lower than its previous close with traders hitting the sell button amid indications from the central bank that it would start tightening its monetary policy.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,699.09 points, shut shop at 16,353.4 points -- 387.1 points or 2.31 per cent lower than Monday’s close at 16,740.5 points. The S&P CNX Nifty of the National Stock Exchange (NSE), too, followed a similar trajectory and ended in the negative at 4,846.7 points, down 2.5 per cent or 124.2 points. Selling pressure was rampant across markets, with the BSE midcap index ending 3.69 per cent lower and the BSE smallcap index 4.42 per cent down.

Among the sectors that bore the bulk of the selling brunt were realty, metal and banking. Market breadth was negative with only 442 stocks advancing, as many as 2,281 declining and 67 remaining unchanged. The market sentiments were hit after the Reserve Bank of India (RBI) hiked the statutory liquidity ratio for commercial banks by 100 basis points while keeping key policy rates intact. The move will suck away some liquid cash from the financial system. THE SENTINEL