Sensex Extends Losses, Down 122 Points
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After Tuesday's crash, the benchmark Sensex on Wednesday fell further by over 122 points and Nifty dipped below the 8,200 mark in early trade on sustained selling by funds and investors after RBI took a cautious stance on economic recovery coupled with forecast of a deficient monsoon.
The 30-share BSE Sensex today fell 122.60 points, or 0.45 per cent, to trade at 27,065.78. The gauge had plunged 660.61 points on Tuesday, its biggest single-day fall, since May 6.
On similar lines, the NSE Nifty index dropped below the 8,200 level by falling 46.95 points, or 0.57 per cent, to 8,189.50.
Stocks of FMCG, infrastructure, banking, auto, power, oil and gas and realty sectors led the decline.
Market sentiment remained distinctly weak even as the Reserve Bank on Tuesday cut interest rate by 0.25 per cent for the third time this year, but hinted there may not be any more cuts in the near term, triggering widespread selling.
Meanwhile, the monsoon is expected to be "deficient" as the Met department gave "below normal" forecast for rains in the country, stoking fears of a drought.
Globally, a mixed trend at other Asian markets and overnight losses at the US market influenced sentiment, they said.
Among other Asian markets, Hong Kong's Hang Seng was up 0.91 per cent while Japan's Nikkei shed 0.49 per cent in early trade on Wednesday.
The US Dow Jones Industrial Average ended 0.16 per cent lower.