Sensex drops to nearly 3-week low, sheds 47 points as metal cos hit

A weak trend in the Asian region and lower opening in Europe on reports of slowdown in China dampened the market sentiment at the domestic front.
Sensex drops to nearly 3-week low, sheds 47 points as metal cos hit

Falling for third straight day, theSensex today dropped by 47 points to close at nearly three- week low amidParliament failing to transact business yet again, raising concerns over thefate of economic reforms.
The BSE benchmark index, which had lost 171 points in previous two sessions,opened unchanged but dropped 108 points to 17,570.71 as metal countersincluding Sterlite Industries, Jindal Steel and Hindalco fell in the 3-5 percent range.
After erasing some losses on the back of gains in Infosys, TCS and ITC, Sensexclosed at 17,631.71, down 47.10 points or 0.27 per cent over yesterday. This isthe lowest closing for the 30-share index since 17,557.74 hit on August 10.
The Parliament failed to transact any business for the sixth straight day todayas BJP continued to create ruckus by pressing its demand for resignation ofPrime Minister Manmohan Singh even as other Opposition parties wanted to takeup debate on CAG report and other business.
A weak trend in the Asian region and lower opening in Europe on reports ofslowdown in China and Eurozone might continue to hurt global economic growth,further dampened the market sentiment at the domestic front.
"Market sentiment became sceptical after political disagreement overseveral matters indicated that sturdy reform measures cannot be expected easilyin near future," said Nidhi Sarswat, Senior Research Analyst, BonanzaPortfolio.
The 50-share National Stock Exchange index Nifty lost 15.65 points, or 0.29 percent to 5,334.60, after touching the day's low of 5,312.60.
In the metal sector, Jindal Steel sank 4.88 per cent, Sterlite Ind. by 5.13 percent, Tata Steel by 1.84 per cent and Hindalco by 3.09 per cent.

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