Sensex sheds 502 pts on weak global cues, blasts

The 30-share BSE Sensex fell 502 points, or 3.4 per cent, to 14,274.94. The broad-based S&P CNX Nifty slipped 121.7 points to 4311.85.

The market opened weak following the decline in world markets earlier. US stocks had declined by 2.4 per cent on Thursday after a report showing yet another drop in US home sales prompted investors to take profits in financial shares. Key benchmark indices in Hong Kong, Japan, South Korea, China and Singapore were also down between 1.5 per cent and 1.97 per cent.

The fall accelerated after the Bangalore blasts. “The index had shot up by 838 points on Wednesday following the survival of the government. Now, it’s correction time. Many investors booked profits on Thursday and Friday. Investors tend to sell at every rise in a bear market,” said a BSE dealer.

Moreover, the market is facing another worry — the possibility of another rate hike on Tuesday when the RBI holds its quarterly review. Although annual Inflation rate held below previous week’s level, the rate has not cooled enough to banish expectations of monetary tightening next week.