Sensex tumbles 172 points

Greece debt woes, weak European stocks impact sentiment

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, fell 172 points on Monday mirroring weakness in European stocks over concerns if the $146 billion EU-IMF package approved on Sunday to rescue debt-riddled Greece would work.

Funds and investors booked profits at existing higher levels pulling the barometer index down by 0.98 per cent or 172.63 points to 17386.08.

This ended two straight sessions of gains, which also had followed strength in global markets after the single European currency euro gained in anticipation of the rescue package. The financial crisis in Greece worsened after rating agencies downgraded that country's debt, raising doubts about its ability to meet $85 billion worth bond payments later this month. The benchmark index dropped 212 points in the final hours to touch an intra-day low of 17345.92, after the European stocks opened in the red on unease over euro zone sovereign debt levels.

Analysts said weak global cues, coupled with sustained selling in index heavyweights such as Infosys, RIL and ICICI Bank dragged the barometer.

The euro weakened after three successive days of advance, and European shares fell as the $146 billion EU-IMF bailout of Greece failed to calm concern about the region's growing debt problems, said an analyst.

The largest financial rescue of a nation from bankruptcy will involve credit of 80 billion euro from the 15 other euro zone nations and 30 billion euro from IMF.

Rupee turns weak

The rupee on Monday weakened by 15 paise to close at 44.51/52 against the U.S. currency due to weak domestic stock markets and a strong dollar overseas. Dollar demand from importers, too, put pressure on the rupee sentiment, dealers said.

The domestic unit opened lower at 44.54/55 from its last weekend's close of 44.3550/3650. It moved in a range of 44.47 to 44.6050 during the day. — PTI