Market bleeds on global worries; Sensex tanks 2.69 per cent

In spite of higher IIP data, the BSE benchmark Sensex continued its downward march for the third consecutive week, slipping 446 points on persistent selling pressure on worries over corporate growth in view of rising inflation and global economic crisis.

Investors are worried over the higher interest rates that will crimp corporate profit growth. Realty stocks fell on worries over higher interest rates.

IT sector suffered the most on likely economic slowdown in the US and Europe, the two biggest markets for Indian intofech firms.

Industrial growth (IIP) in the country revived moderately to 8.8 per cent in June this year on the back of a smart recovery in the manufacturing sector and better off-take of capital goods.

Selling by foreign institutional investors (FIIs) and growing fears of another recession in US, the world's biggest economy, pushed the 30-share Sensex down by 466.24 points, or 2.69 per cent, to end at 14-month closing low at 16,839.63.

The S&P CNX Nifty also dropped by 138.30 points, or 2.65 per cent, to settle at 5,072.95.

An unprecedented downgrade of the US credit rating by Standard & Poor's on August 5 led investors to reduce exposure to risky assets.