Sensex dips below 19,000; down 138 points on interest rate concerns

The BSE Sensex today closed below the 19,000 mark, down 138 points, declining for the sixth straight session as investors remained cautious ahead of RBI meeting tomorrow, expecting a hike in key rates.

Interest-sensitive banking stocks fell the most. Global stock markets also exhibited a weak trend.

the 30-share Bombay Stock Exchange index, Sensex, which had lost 466 points in the last five trading sessions, fell further by 137.94 points to close at 18,998.02.

It has closed below the 19k mark in over a month.

Similarly, the broad-based National Stock Exchange index Nifty lost 48.20 points to 5,701.30 as banking, consumer durables and refinery sector stocks suffered major losses.

Brokers said market participants turned cautious on fears that the Reserve Bank might adopt a hawkish stance at its annual monetary policy meeting, in view of high inflation amid soaring crude oil prices.

They said state-owned banks, led by SBI, declined after Morgan Stanley downgraded them on fears that any further hike in borrowing rates would reduce their interest margins.

However, a rise in the second most-heaviest stock Infosys Technologies on reshuffling its top management, amid growth concerns, saved the market from any major fall, they added.

The decline was also partly capped following reports that the six core sector industries grew by 7.4% in March and by 5.9% during 2010-11.

The banking sector index suffered the most by losing 2.08% to 12,804.48, followed by consumer durables, shedding 1.76% at 6,280.29 points.

The BSE Oil and gas index too ended 1.34% lower at 9,873.71, while metals index declined by 1.04% to 16,021.55.