Sensex ends below 18,000; RIL, Infy shed

The Sensex on Wednesday slumped below 18,000 mark to its lowest in over six weeks, shedding 169 points as funds sold banking, auto and heavy machinery stocks over worries over a slowing domestic growth amid weak global trends.

The Bombay Stock Exchange's 30-scrip index, which had lost 204 points in the last run , touched the intra-day low of 17,859.50 before closing 169.34 points down at 17,940.55, a level last seen on June 16.

Sensex leaders Reliance Industries (RIL) and Infosys lost 1.19 per cent and 0.76 per cent, respectively. Lenders led by ICICI Bank and HDFC Bank fell on worries over sticky inflation and rising interest rates might dent the revenue on fall in loan demand.

Interest rate-sensitive auto and realty stocks also suffered losses on concerns over rising borrowing costs.

Brokers said trading sentiment turned bearish after telecom major Bharti Airtel posted poor results for the first quarter of this financial year and the Prime Minister's Economic Advisory Council lowered the country's yearly growth forecast to 8.2 per cent from 9 per cent.

Sentiment at home was also influenced by a weak Asia and lower opening of European stocks on nagging sovereign debt worries after it emerged that Italy had approached the European Union to settle a potential debt crisis at home after yields on Italian bonds touched the highest in Euro-history.

US data showing decline in consumer spending in June further dampened the sentiment.

Broad-based National Stock Exchange index Nifty dropped below 5,400-level before ending 51.75 points to lower to 5,404.80.