The Sensex today plunged nearly 161 points draggeddown by power, metal and oil&gas stocks as better-than-expected 5.5 percent growth in first quarter dashed hopes of interest rate cut, amid a weakglobal trend.
After a slow start, the BSE benchmark index dropped to17,337.61 soon after the Gross Domestic Product number was announced. Itattempted to stage a comeback and went up to 17557.62 but lost the momentum toclose at 17,380.75, down 160.89 points or 0.92 per cent over yesterday closingvalue.
Poor showing by the manufacturing sector pulled down the GDPgrowth to 5.5 per cent in the April-June quarter, the decade's worst Q1performance, but was a higher than the 5.3 per cent estimate put out by mosteconomists.
Sustained selling in RIL, ITC, TCS and ICICI Bank weighed onthe 30-share index where Hindalco, CIL and Bhel were among the worst performerslosing over 2 per cent each.
Brokers said the better-than-expected growth might hampergovernment efforts to revive the economy and force the RBI to ease lendingrates.
"GDP growth in Q1?FY13 witnessed a marginalimprovement...
Given any credible steps towards fiscal consolidation so farand RBI?s prevalent hawkish stance, we do not expect RBI to cut rates in theSeptember meeting," said Esp?rito Santo Securities Cheif India EconomistDeepali Bhargava.
Out of the 13 BSE sectoral indices, 12 ended lower withpower, metal, oil&gas, realty and auto losing over one per cent each.
The 50-share National Stock Exchange index Nifty lost 56.55points, or 1.06 per cent to close at 5,258.50.