Sensex plunges over 400 pts, dips below 16,000

Selling pressure intensified in the Indian markets on Monday with the Bombay Stock Exchange index Sensex falling below 16,000.

The index fell below the psychological mark for the first time in almost one and a half months due to weak cues from Asian and other global markets.

The 30-scrip index of BSE, which opened lower at 16,297.03 points, closed at 15,946.10, down 2.60 per cent or 425.41 points, from its previous close of 16,371.51. The Sensex touched a high of 16,297.03 points and low of 15,900.30 in intra-day.

At the National Stock Exchange, the 50-scrip S&P CNX Nifty slumped 2.60 per cent to close at 4,778.35 points.

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Both benchmarks had lost about 5 per cent last week as the European debt crisis continued to plague Indian investors.

Broader markets as well as all the sectoral indices also closed in the red with metal, banking and realty stocks facing the maximum selling pressure.

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Metal index of the BSE slumped 3.46 per cent. Banking and realty indices also lost over 3 per cent.

Asian markets ruled lower as investors remained unconvinced over an early resolution to the European debt crisis indicating doubts over the ability of political leaders in the zone.

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The Japanese Nikkei closed 0.32 per cent down at 8,348.27 points, while Hong Kong's Hang Seng was ruling 1.27 per cent lower at 18,256.03 points.

The Chinese Shanghai composite index closed flat at 2,415.13 points.

- with inputs from IANS