Mumbai, April 4
News of inflation surging to 7 per cent spooked the markets with Sensex getting battered down 3.1 per cent to close 489 points lower at 15, 343 levels. In broader markets, the Nifty plunged 2.6 per cent or 124 points to close at 4,647 levels.
Among the major losers today were companies in the capital goods, banking, oil & gas and realty sectors, which fell by more than 2.3 per cent each.
The biggest loser today was BHEL, which fell 6.9 per cent to close at Rs 1,634. Other major losers included HDFC, Mahindra and Mahindra, Jaiprakash Associates and L&T.
Among sectoral indices, the BSE capital goods index fell 4.5 per cent or 594 points. The major losers in this sector were Crompton Greaves, BHEL, L&T and Praj Industries.
PTI adds: Traders said the markets were gripped with fears that following inflation soaring further stringent monetary measures, including a hike in Cash Reserve Ratio (CRR), could be on anvil.
A hike in CRR will affect the market as it sucks out liquidity in banking system, market players said. CRR is the rate of amount all the commercial banks need
to maintain with the central bank.
The BSE barometer turned weak after opening better. The index touched the intra-day low of 15,303.04 as the news of inflation touching 7 per cent tricked in.
