Profit booking continues, BSE Sensex slumps by 165 points

The BSE Sensex nosedived by over 165 points as profit-booking continued across counters for the third consecutive day, with investors turning cautious amid a slew of negative factors.

Eleven of the 12 sectoral indices closed in red with metal, banking, auto and power segments leading the downfall. Consumer durables index managed to to settle in the green.

The 30-share index of the Bombay Stock Exchange was in the negative terrain for most of the day before settling at 22,466.19, a fall of 165.42 points or 0.73 per cent.

In straight three sessions, the Sensex has plunged by 410.35 points or 1.79 per cent.

The wide-based 50-issue CNX Nifty of the National Stock Exchange also dipped by 46 points or 0.68 pct to 6,715.25.

Investors worries over developments in Ukraine lingered on as the US has already announced some sanctions and also threatened to impose more economic sanctions on key sectors of Russia's economy.

The sentiment was also influenced by the two-day monetary policy meet of the US Federal Reserve that will start later on Tuesday and is expected to trim monthly bond purchases by another $10 billion.

On the domestic front, slowdown in capital inflows and announcement of below normal monsoon continued to weigh on minds of investors.

Stock brokers said wary investors are now waiting for the outcome of the Lok Sabha elections and they hope a new stable government will take initiatives on reform measures.