Sensex breaches 16,000, falls to 4-month low

The BSE Sensex has breached the psychological 16,000 mark for the first time in over four months. It plunged 330 points or 2% to 15,998, while the broader Nifty index slipped below the 4,850 mark, falling 97 points post noon. The Sensex traded below these levels on January 12, 2012.

The Sensex hit an intraday low of 15,978 while the Nifty hit a low of 4,841 before a small recovery was seen in stocks.

Worsening global cues and continued pressure on the rupee weighed on investors today. Earlier, the rupee hit an all-time low in intraday trade.

"We are headed lower. 5,080 was a clear breakdown for the markets. The trend is down but from a level point of view 4,795-4,765 is an important support," Anil Manghnani, director of Modern Shares & Stock Brokers told NDTV Profit today.
Global stocks dipped as the possibility of a new government dipped in Greece, which is now headed for fresh elections in June. Asian markets traded near the day's low. South Korea's Kospi (-3.1%) index and the Hang Seng index (-3%) in Hong Kong extended losses.

European stocks also opened lower. Spain's IBEX index was down 1.4% in early trade. Overnight, the Dow fell 0.5% to 12,632.

"Markets are also down because of a major economic slowdown in China," Marc Faber told NDTV Profit today.

China, the world's second-largest economy, has reported a sharp decline in both investment and industrial production growth for April.