Sensex sinks below 16K

The Sensex sank below the 16,000 mark to close at 15,896, down 156.44 points taking the market by surprise.

It opened 200 points on the upside on strong global cues but the bounce back encouraged the big boys who continue to exit to book out.

“Clearly it was profit booking that dragged the Sensex down but there are other factors like the recent results which have not been as good as those in March and June,” said Mr Ambareesh Baliga, the vice-president of Karvy Stock Broking.

Besides an eight to nine per cent fall in a week has shaken short-term traders who book out, he added.

The bounce on opening encouraged people to take short positions but when they saw the fall coming they sold out quickly.

Reliance Industries and ONGC which fell four per cent and 2.8 per cent respectively, pulled the index down and the Indian markets got no support from the European markets which opened weak, the Dow futures too was negative and all this led to a sell off, said Mr Pradip Hotchandani.

“Reliance Industries has been underperforming,” he said “and the market has been worried at the trend of the KG gas case between RIL and RNRL in the Supreme Court. They feel the case is going against RIL.”

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