Sensex down by 215 points, below 17k level again

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The Bombay Stock Exchange benchmark Sensex fell by over 215 points to below the crucial 17,000-level at mid-session on Friday as initial gains were wiped out by global economic growth concerns.

The Sensex, which had climbed 1.1 per cent in opening trade, dropped by 215.80, or 1.26 per cent, to 16,843.60 at 1230 hours, led by stocks of software exporting companies.

At the same time, the broad-based National Stock Exchange Nifty index lost 53.70 points, or 1.05 per cent, to 5,084.60, after initially trading higher at 5,194.45.

Brokers said the market remained directionless amid fears of slowing down economic growth after Standard and Poor's unprecedented downgrade of the US debt rating and a similar crisis in Europe.

They said the market received another blow after Citigroup reduced its forecast for the Sensex to 19,700 from 21,500, citing a "weak market environment" and "heightened uncertainty".

The downtrend was led by stocks of IT companies like Infosys, Wipro and Tata Consultancy on fears that the global crisis would dent their business.

Nearly 60 per cent of the country's software export revenues come from the US and European markets.