Sensex plunges 314 points as Europe debt worries mount

The Sensex on Thursday closed 314 points lower amid heavy selling in energy, power and metal stocks, as concerns on the European debt crisis continued to dampen investor sentiments.

The 30-scrip index of the Bombay Stock Exchange, which opened lower at 16,754.68 points, closed at 16,461.71 points, down 314.16 points, or 1.87 per cent, from its previous close of 16,775.87 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended in the red, 95.70 points or 1.90 per cent lower at 4,934.75 points.

Broader markets also ended lower with the BSE 500 index closing 1.81 per cent down. The BSE midcap index fell 1.35 per cent, while the BSE smallcap index shed 1.25 per cent.

Asian markets stocks continued to trade cautious as investors were worried over the European Union's ability to curb the debt crisis from spreading to other economies in the zone.

France and Europe have not yet agreed on the European Central Bank's bond buying role, while a bailout fund created to help out heavily leveraged economies is yet to collect funds.

The Japanese Nikkei closed on a lacklustre note, 0.19 per cent up at 8,479.63 points, while Hong Kong's Hang Seng was ruling 0.76 per cent lower at 18,817.47 points.

The Chinese Shanghai composite index closed flat at 2,463.05 points.