Sensex falls 490, biggest in 5 months

Mumbai, Jan. 27: The BSE’s benchmark Sensex plummeted 491 points on Wednesday, its biggest single-day fall since August. Market watchers said international factors had driven the indices down. The Sensex has fallen almost 1,350 points in the last six sessions.

The drop started after US President Barack Obama outlined new measures to restrict the activities of big banks, especially on proprietary trading. Foreign investors have turned net sellers in the Indian market for the past few sessions.
There is also an expectation that the RBI will hike the CRR-cash reserve ratio — the funds that banks need to park with it. The sectors sensitive to interest rate hikes — automobiles and real estate — were among the top losers on the Sensex on Wednesday.

Age Correspondent