Sensex tumbles by 280 points

The BSE benchmark sensex continued to finish in negative terrain for the third week in a row.

The BSE benchmark sensex continued to finish in negative terrain for the third week in a row by slipping further 280 points at 17,728.61,due to persistent selling from operators and investors in view of sustained capital outflows by foreign funds.

Telecom counters suffered on widening its probe by the Central Bureau of Investigation (CBI) in 2G spectrum scam and confusion over telecom regulator TRAI’s new recommendations on 2G spectrum pricing.

The arrest of DB Realty’s founder in connection with the probe into telecom spectrum allocation also another factor behind fall in share values.

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Consumer durable,metal,realty,power,capital goods and PUS were the pacesetters in the decline.

Expectations of slow down in corporate earnings in the coming quarters on recent interest rates hike and hopes to increase further on rising inflation and also trade imbalances mainly unnerved investors.

Unrest in the Egypt,which will have negative impact on domestic oil prices as India is a major importer of oil,also was a cause of concern.

The BSE benchmark sensex resumed higher at 18,135.02 and hovered in a range of 18,180.94 and 17,295.62 before ending the week at 17,728.61,disclosing a loss of 279.54 points or 1.55 per cent from its last weekend’s level. It has dropped by 1,278.92 points or 6.73 per cent in the last three weeks.