Sensex tumbles by 257 pts as metal, refiners fall

Friday 19 June, 2009.

The Bombay Stock Exchange benchmark Sens*x fell for the second straight session on Thursday by losing 257 points as market participants sold at higher levels.

The Sens*x, which had lost 435 points in the previous day's trading, lost another 257.31 points at 14,265.53 as heavyweights like Reliance Industries and Tata Steel recorded hefty losses. It touched the day's low of 14,188.25 points.

Similarly, the 50-share National Stock Exchange index Nifty lost 104.75 points at 4,251.40. It touched the day's low of 4,222.15.

The fall was led by Reliance Industries after UBS cut its rating and said any further gains in local equities would be limited.

Major market players were also seen booking profits at existing higher levels as they judged the current rally of over 80 percent since March 9 was overdone.

Reliance Industries' stock slid 1.26 percent after UBS said oil-refining profit may drop.

Tata Steel, the biggest steelmaker, sank 6.71 percent. Stocks retreated despite the inflation rate becoming negative for the first time in three decades, giving the government the scope to spend more in next month s budget.

A weakening trend in Asian and European markets was another reason behind the dampening of trading sentiment.