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Sensex Tumbles 400 Pts On GDP Figure

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The BSE benchmark Sensex fell over 400 points on Friday, 31 May due to selling by funds as well as retail investors after the country's economic growth declined to a decade low of 5 per cent.

The 30-share barometer after losing over 150 points in early trade, fell further by 400 points, or 1.9 per cent, to slip below 20,000-point level.

All the sectoral indices, barring IT, were trading in the negative zone with fall up to 1.49 per cent.

The Nifty fell as much as 2.1 per cent on Friday, 31 May '2013 as lenders such as ICICI Bank Ltd reeled after economic growth data came in line with expectations, dashing hopes the RBI would cut interest rates next month.

Trading sentiment dampened on weak GDP growth, which fell to a decade low, and RBI Governor D Subbarao saying yesterday that central bank is concerned about the country's wide current account deficit (CAD) and still-high retail inflation.

India's economic growth rate declined to a decade low of 5 per cent in 2012-13. The growth slowed to 4.8 per cent in January-March quarter of 2012-13 compared to 5.1 per cent in the same period previous fiscal.

Bucking the trend, IT sector stocks managed to trade in positive zone mostly supported by a weakening rupee which hit one-year low against the dollar.