Sensex slumps 214 pts to end below 19K; Mkts shrug off FM talk

A rout in world markets triggered across-the-board selling pulling down benchmark BSE S&P Sensex today by 214 points to end below 19K-mark for the first time in nearly two months, even as Finance Minister P Chidambaram announced that more economic reforms are on the anvil.
The Bombay Stock Exchange 30-share barometer resumed lower due to weak Asian cues on the back of steep fall on Wall Street yesterday and remained in negative terrain throughout the day. It finally settled at 18,827.16, showing a fall of 213.97 points or 1.12 per cent.
In straight three sessions, Sensex has fallen by 613.91 points or 3.16 per cent amid a weak rupee and hefty capital outflows. The index last closed below 19K-mark on April 17.

The 50-issue NSE Nifty also dipped by 61.10 points, or 1.06 per cent, to end below 5,700-mark at 5,699.10. MCX-SX flagship index, SX40, ended 102.23 points lower at 11,179.36.
Stock market participants were under the grip of a sell-off in global equities. A day after rating agency Fitch revised credit outlook for India from negative to stable, Chidambaram said the government will soon decide on coal and gas pricing and review FDI cap in various sectors.
"Market opened lower and remained weak throughout the day mainly on the back of weak global cues. Asian markets closed an average 2 percent down. Japan's Nikkei closed 6.35 per cent down on the back of strength in Yen," said Shrikant Chouhan, Head Technical Research, Kotak Securities.

Out of the Sensex components, 25 stocks declined led by drop in Tata Motors and Mahindra and Mahindra. Apollo Tyres fell by 25.43 per cent on debt concerns related to proposed Rs 14,500-crore Cooper Tire acquisition. Also, Sun Pharma extended a five-day drop by losing 3.22 per cent after it was asked to pay USD 550 million to settle a patent litigation.
Among 13 sectoral indices, only BSE-CD closed in positive terrain. Other sectors closed in negative territory with a fall between 0.69 per cent and 2.33 per cent with auto, realty, power, pharma, and IT leading the downfall.
All eyes are on tomorrow's WPI numbers which may shape RBI policy on June 17 even as weak rupee has hit rate cut hopes.