Key benchmark indices on Thursday slumped to hit their lowest level in more than two weeks, virtually wiping off the previous session's entire gain -- as the parliament was rocked this morning following reports of an alleged coal scam.

1. Sensex tumbles 405 points
on weak rupee

2. Key benchmark indices on Thursday
slumped to hit their lowest level in more
than two weeks, virtually wiping off the
previous session's entire gain -- as the
parliament was rocked this morning
following reports of an alleged coal scam.

3. BSE Sensex plunged to 17,196.47 , down 405 points.
Of the 30 Sensex scrips, 28 tumbled. All the 13
sectoral indices closed in losses, with
realty, power, banking, capital goods, metal and
refinery stocks being hit hard.
Market heavyweight Reliance Industries dropped
4.15 per cent, and Infosys by 1.39 per cent. The two
carry 20 per cent weight on the Sensex.
The rupee’s sharp decline against the US dollar to Rs
51 level worried investors that it will inflate
government’s import bill, especially on account of
oil, worsening fiscal deficit situation.

4. Besides, reminiscent of the 2G spectrum
allocation scam, the Comptroller an Auditor
General (CAG) said in a draft report that the
government lost Rs 10.67 lakh crore on account
of allotment of coal blocks to 100 private and
public sector companies without auction during
2004-2009.
However, CAG later informed the prime
minister that media reports on alleged coal scam
were “exceedingly misleading”.
Sensex moved in a narrow range till late
afternoon, but last hour selling pulled it down
sharply to 17,196.47, erasing 405.24 points or
2.30 per cent. In last two days, it had risen
328.34 points or 1.90 per cent.

5. Similarly, NSE 50-scrip index Nifty tumbled
136.50 points or 2.54 per cent to two-week low
of 5,228.45.
“A mix of domestic and global factors hurt
investor sentiment. The leakage of a draft CAG
draft report weighed markets down. The Indian
rupee weakened against the US dollar further
spooked sentiments,” said Paras
Bothra, Research Head, Ashika Stock Brokers.
Globally, European markets were trading
weak, adding to investor woes, he said.

6. Asian stocks were down in early trade after a
survey showed China’s manufacturing has
shrunk.
Key indices in China, Singapore and South
Korea finished with marginal losses, although
Hong Kong, Japan and Taiwan ended with
gains.
European markets were trading sharply lower in
the afternoon. CAC (France), DAX
(Germany), FTSE (UK) were down by up to 1.52
per cent.