Sensex tumbles by 348 pts on concerns over global tension

Mumbai, Jun 13: Profit-booking on concerns over rising tensions in Iraq and surging crude oil prices pulled down the S&P BSE benchmark sensex by 348 points to finish at 25,228.17.

Depreciation of rupee and surging crude oil prices in the global markets on concerns that unrest in Iraq could lead to disruptions in the country’s oil supplies also the another behind fall in the share values.

Foreign capital outflows also affected the market to some extent, a broker said. Foreign institutional investors sold shares worth Rs 652.35 crs yesterday, as per provisional data from stock exchanges.

The sensex resumed higher at 25,677.05 and shot up further to 25,688.31 on initial buying on the back of positive retail inflation and IIP data. However, it failed to maintain initial gains on fresh selling pressure mainly in Realty, Power, Consumer Durable, Metal, banking and Capital goods sectors to touch a low of 25,171.61 before ending the day at 25,228.17, showing a loss of 348.04 points or 1.36 per cent.

The NSE 50-share Nifty also dropped by 107.80 points or 1.41 per cent to finish at 7,542.10. Asian stocks ended mixed in a choppy trade after data showed China’s industrial output and retail sales growth accelerated in May. Key indices in China, Hong Kong, Japan and Singapore firmed up by 0.01 pct to 0.93 pct while indices in South Korea and Taiwan moved down by 0.09 pct to 1.03 pct.