Sensex slumps 390pts in global rout,investors lose Rs 1.3 L-cr

In sync with a rout in global stocks, BSE benchmark Sensex today plummeted nearly 390 points to end below 20,000-level on host of negative factors like dismal SBI earnings, US Fed remarks on likely scaling down of monetary stimulus and poor factory output signs in China.
Tracking overnight losses in US markets, the 30-share index sank under immense pressure right in the opening with overseas investors stepping up selling across counters.
Around 19 per cent slump in SBI's fourth quarter profit that sent its shares down 8 per cent triggered all-round selling with BSE Realty, Capital Goods, Power and Banking indices falling by 3-6 per cent. L&T, RIL, ICICI Bank, Bharti Airtel, BHEL and Jindal Steel were among major Sensex losers.

Sensex finally closed at a nearly two-week low level of 19,674.33, a fall of 387.91 points, or 1.93 per cent. In four days, it has tumbled by 611.79 points or 3.01 per cent.
Similarly, the broad-based 50-issue CNX Nifty of the NSE also tanked by 127.45 points or 2.09 per cent to end at 5,967.05. MCX-SX flagship index SX40 also closed down by 178.75 points, or 1.51 per cent, at 11,682.3.
Across the markets, investor wealth worth Rs 1.37 lakh crore was wiped off today with over 1,700 stocks ending on the losing side while nearly 600 scrips managing to close higher.

Finance Minister P Chidambaram sought to assuage stock markets by asserting that there was no need for any "nervousness" and the participants should read the situation correctly rather than be influenced by external developments.

"Fed Chairman Ben Bernanke suggestion that the central bank may begin tapering its bond-buying program later this year sent markets tumbling," said a note from India Infoline.
Rupee also wilted under capital outflows and was trading at 55.6 levels against dollar, after touching lowest level since September 2012.
Globally, Asian stocks slid after unexpected decline in China's manufacturing data in May after seven months and Japan's Nikkei stock index plunged by over 7 per cent.