Market Update: Sensex slumps 340 points to log biggest fall in over two weeks

The benchmark Bombay Stock Exchange (BSE) Sensex on Friday fell nearly 340 points, its biggest fall in over two weeks, due to across-the-board losses in bluechips amid a global sell-off on economic growth concerns, although software firm Infosys surged 6.68 per cent on positive Q2 earnings.

Brokers said besides profit-booking by speculators, a lower closing on other Asian markets and a subdued opening of the European mkarkets on growing concerns about the global economy, after the IMF head warned that Euro-zone could slip into recession, influenced trading sentiments in the domestic market.

The 30-issue BSE Sensex, which had gained 390.49 points in Thursday's trade, fell by 339.90 points (or 1.28 per cent), to 26,297.38, with all the sectoral indices, except IT and Teck, ending in red with losses up to 4 per cent.

On similar lines, the 50-share National Stock Exchange (NSE) index Nifty struggled to maintain the 7,900-mark and ended 100.60 points (or 1.26 per cent) down at 7,859.95 after dipping to 7,848.45 intra-day.

Brokers also said that a rally in Infosys on the back of good second quarter earnings, cushioned the fall in the BSE barometer.

Shares of IT major Infosys surged 6.68 per cent to close at 3,888.95 after the company posted 28.6 per cent jump in consolidated net profit for the quarter ended September 30, and declared bonus issue in the ratio of one share for every share held.

Of the 30 Sensex scrips, 23 shares ended with losses led by Tata Motors (down 5.3 per cent), Hindalco (4.79 per cent) and Sesa Sterlite (4.60 per cent).

Sectorwise, the metal index suffered the most by losing 4.11 per cent, followed by auto index (2.78 per cent), FMCG index (2.56 per cent) and Banking index (1.80 per cent).

Bucking the trend, the IT index gained 2.29 per cent, while Teck index rose 1.17 per cent.

Meanwhile, provisional data released by the stock exchanges showed foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore on Thursday.