Sensex falls 224 pts on euro worries

The BSE benchmark index Sensex onTuesday fell by 224 points on profit selling, especially in banking auto andrealty stocks, driven by weak global trends after renewed concerns over theEuropean debt crisis.

The 30-share index lost 224.18 points, or 1.27 per cent toclose at 17,480.83 points. It had lost 99.79 points in the previous session.

The wide-based National Stock Exchange Nifty index declinedby 68.65 points, or 1.29 per cent to 5,257.95 points.

Brokers said investors booked profits after a rally lastweek amid uncertainty over the eurozone debt crisis. The Sensex had risen over6 per cent last week.

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Market leader Reliance Industries fell by 1.96 per cent toRs 860.55 and Infosy by 1.32 per cent to Rs 2,837.20. The two scrips have 20per cent weightage in the Sensex.

Banking stocks fell over fears that hike in savings interestrate would reduce banks profitability and dent the earning of interest-sensitiveindustries. The banking sector index lost 1.54 per cent to settle at 11,277.95points.

The auto sector index suffered the most by 1.98 per cent to9,289.34 on reports of fall in vehicle sales during the October month, whilerealty sector lost 1.87 per cent to 1,883.80 on fears the interest hike mightcurb home sales.

A weakening trend in the Asian region and lower opening in Europe as the announcement of a Greek referendum spurredconcern that the country may default, continued to dampen the tradingsentiment.