Sensex falls on global economic growth worries

Mumbai, July 6 (IANS) A benchmark index for the Indian equities markets fell 0.31 percent in the afternoon session Friday due to selling pressure in realty, metal and IT stocks as easing of monetary policy by China, Britain and eurozone signalled more worries in the global economy.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 17,546.04 points, was trading at 17,484.47 points in the afternoon session, down 0.31 percent or 54.20 points from its previous close at 17,538.67 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange also was down 0.30 percent at 5,311.15 points.

There was heavy selling pressure in metal, realty and IT stocks. The BSE metal index was down 1.40 percent. Realty index was ruling 1.30 percent down, and the IT index was down 1.08 percent.

India markets turned negative, taking cues from weak global peers as monetary policy easing by the central banks in China, Britain and eurozone signalled that the global economic growth may decline further.

In a coordinated move the European Central Bank Thursday cut key policy rate by 0.25 percent, the People's Bank of China reduced one-year deposit rate by 0.25 percent and the Bank of England raised bond purchase target by $78 billion to ease interest rates.

The coordinated move signals that the monetary policy markers are worried about the growth.

Major Sensex losers were Jindal Steel, down 3.18 percent at Rs.455.10; Sterlite Inds, down 2.23 percent at Rs.107.30; Wipro, down 1.67 percent at Rs.389.60; Maruti Suzuki, down 1.60 percent at Rs.1,220.85; and Hindalco Inds, down 1.56 percent at Rs.123.30.

Only nine of the 30 Sensex scrips were in the positive.

Hindustan Unilever, up 1.52 percent at Rs.446.85; Cipla, up 1.40 percent at Rs.329.00; Mahindra & Mahindra, up 1.21 percent at Rs.731.50; and Tata Motors, up 1 percent at Rs.242.40 were among the major Sensex gainers.

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