Sensex plunges by 324 points, banking, consumer goods hit

Mumbai, May 21: Vanquishing the euphoria over a stable UPA government, weak global cues and profit-booking brought the benchmark Sensex on BSE down by over hefty 320 points today amid worries that the market will be volatile and may test the lower end in the coming days.
Led by fall in banking and capital goods shares, the 30- share index on the Bombay Stock Exchange closed below psychologically important 14K-level at 13,736.54, lower by 324.12 points, or 2.31 per cent.

The National Stock Exchange's 50-share Nifty dropped by 59.40 points, or 1.39 per cent, to close at 4,210.90.

Marketmen said a sharp fall in European markets adversely impacted the market in late afternoon trade. European bourses were down 1.70 per cent to 2.36 per cent in early trade.

"It was correction induced by profit-booking," said Bonanza Portfolio Assistant Vice President Avinash Gupta, adding that going forward the market is expected to be volatile and may test the lower end.

Stocks of oil companies escaped the selling pressure while banking and capital goods shares were battered.

"In today's market, the exception was the oil sector PSU's. This was on account of appreciation that the there could be deregulation of oil and petroleum products. This could reduce subsidy burden enabling companies to generate resources to pursue the growth," Gupta said.

ONGC, BPCL, IOC and HPCL notched up smart gains in the range of 8-15 per cent. PTI