Sensex at 3-year closing low

A surprise cut in policy rates by the Reserve Bank of India (RBI) failed to lift spirits on the bourses with the Sensex tumbling to 3-year closing low. Sustained selling by foreign funds, weak rupee and weak European markets weighed on the sentiment. Bond prices gave up initial gains which also weighed on equities. The BSE 30-share Sensex was down 248.57 points, or 2.94%, off close to 340 points from the day's high.
Index heavyweight Reliance Industries (RIL) led the decline. FMCG, banking and capital goods stocks also declined.
After opening on a positive note on higher Asian stocks and the Reserve Bank of India's latest effort to boost liquidity, the market soon slipped into red as sustained selling by foreign funds and a weak rupee weighed on the sentiment. A sharp slide was witnessed in morning trade as some Asian markets came off the day's peak as there was no announcement of an additional stimulus package by China which the investors were expecting.
The market extended losses in early afternoon trade. It came off the day's low in afternoon trade. The market tanked to the fresh day's low in mid-afternoon trade as European shares dropped in early trade. A bout of volatility was witnessed in the last 40 minutes of trade as day trades squared positions. (Source : Capitalmarket)