Sensex dips by 513 points

    
MUMBAI: The benchmark Sensex on Wednesday plunged by over 513 points to cut short its gaining trend of the past two days on heavy selling in metal, realty and banking stocks.
     
After two days of good buying support, selling emerged after global stocks fell on renewed fears of global economy falling into a recession. IT major Wipro's cautious outlook for near-term was another dampening factor, marketmen said.
     
The bellwether Sensex on BSE ended the day at 10,169.90, a sharp loss of 513.49 points, or 4.81 per cent, while Nifty on NSE settled lower by 169.75 points, or 5.25 per cent.
     
Elsewhere, Asian indices closed lower in the range of 1.6-6.8 per cent. European markets also were down by about 2.0-3.0 per cent in their morning trading.
     
Earlier last week, the Sensex had fallen below the psychologically important 10,000 mark level but it regained the level this week and even posted 700-point gain in the past two days.
     
Brokers said market sentiment continued to be adversely affected by sustained capital outflows this month. FIIs remained net sellers, taking the total outflows to 1.15 billion dollars in October.
     
India's fourth largest IT exporter Wipro dropped by 5.79 per cent after the company this morning announced a cautious outlook for near-term in view of a slowdown in global economy.
     
Metal stock tumbled following a sharp fall in prices on the London Metal Exchange on Tuesday.
    
Despite rupee's sharp fall against dollar, IT stocks also suffered in sync with their ADRs in the US markets.    

Telecom shares were also battered on fears that the government's decision to impose a fine on unverified subscribers would reduce bottom lines of telecom sector.