Closing Bell: Sensex Sinks 300 Points to Close Below 35000-Mark

Mumbai, May 18: The benchmark Sensex slumped 300 points to end at 34,848.30 today on across-the-board selling amid political uncertainty in Karnataka and negative global cues. The broader NSE Nifty too cracked below the 10,600-level. No let-up in selling by foreign funds and surging crude oil prices in global markets dragged down the key indices. Investors remained on the sidelines amid doubts whether the B S Yeddyurappa government in Karnataka will be able to prove its majority in the house tomorrow, brokers said.

The Supreme Court today ordered a floor test in the Karnataka Assembly at 4 PM tomorrow, reducing the 15-day window given by the Governor to Yeddyurappa to prove majority. Yeddyurappa was sworn-in as the chief minister yesterday. Falling for the fourth straight session, the 30-share Sensex opened lower and stayed in the negative terrain for the major part of the session, hitting a low of 34,821.62 before ending at 34,848.30 -- down by 300.82 points or 0.86 percent. The barometer had lost 407.59 points in the previous three sessions.

The 50-share NSE Nifty settled 86.30 points, or 0.81 percent, lower at 10,596.40. During the session, it moved between 10,589.10 and 10,674.95. During the week, the Sensex lost 687.49 points, or 1.93 percent, while the Nifty dropped 210.10 points or 1.94 percent. State-run banks remained under selling pressure on disappointing quarterly results due to a jump in provisions for bad loans.