Sensex Falls 250 Points as Energy Stocks Sink

A sharp fall in energy stocks pressured the benchmark Sensex and Nifty in afternoon trade on Friday. The Sensex slumped over 200 points or 0.8 per cent, while the Nifty traded below the key 8,250 levels.

Shares in state-run Gail (India) declined 6 per cent tracking the continued slide in global Brent crude prices. Fall in crude oil lowers petchem and LPG realizations which in turn impacts Gail India's margins.

Upstream oil producers such as Cairn India and state-run ONGC also fell sharply.

Index heavyweight stocks such as Reliance Industries fell sharply, weighing on sentiments. IT stocks also came under selling pressure after earlier gaining over 1 per cent. TCS fell over 2 per cent ahead of an analyst meet later today.

Selloff in high beta metals and realty stocks also impacted market sentiments, traders added.

Nifty gainers included Ambuja Cements, up 1.8 per cent, and state-run NMDC, Bharti Airtel, Sun Pharma and Maruti Suzuki.

The silver lining for markets was the recovery in the rupee, which pulled back to 62.31 per dollar after earlier falling to 62.51, its worst fall since February.