Sensex closes 258 pts down at 10,509

MUMBAI: The benchmark Sensex plunged over 258 points on the Bombay Stock Exchange on Friday on frantic selling by funds.

The Sensex, which recorded a gain of 120 points at the outset, tumbled to 10,440.02 points before ending at 10,509.53, showing a fall of 258.44 points.

Similarly, the National Stock Exchange index nifty dropped by 80.55 points at 3075.85, after touching the day's low of 3056.30.

The dealers attributed the plunge to political uncertainty following pressure by allies of the UPA government to halt divestment of PSUs.

They said that Prime Minister Manmohan Singh's decision on Thursday to bow to pressure and freeze a privatisation programme it had announced two weeks ago had brought on doubts about whether economic reforms in India would continue.