Sensex tumbles 264 pts on political worries

The benchmark Sensex of Bombay Stock Exchange on Monday nosedived nearly 264 points on selling pressure sparked by fresh political concerns after the Dravida Munnettra Kazhagam (DMK) pulled out of the UPA government at the Centre.

Marketmen said weak global cues in the wake of soaring oil prices also dampened the sentiment.

The 30-share index closed with a loss of 263.78 points at 18,222.67, mainly due to shattered investor confidence in the aftermath of fresh political worries at New Delhi. In a similar fashion, the broad-based National Stock Exchange index Nifty dropped by 75.60 points to 5,463.15.

Meanwhile, continuing turmoil in Libya pushed the crude prices above $105 in New York, which spooked investors. The Sensex has lost 11 per cent this year, to become the worst performer in Asia.

The auto sector suffered the most - losing 2.55 per cent, as Tata Motors dropped 3.64 per cent. The capital goods sector was the second worst performer at 2.36 per cent.

The realty sector, an interest-sensitive sector, declined 1.66 per cent and banking index 1.60 per cent. The small cap index lost 1.43 per cent and the mid cap index 1.41 per cent.