Telecom | banks nosedives as SENSEX down 2.3 percent

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The increasing effect of ongoing 2G scam probe and major Telecom companies getting notices played it's roll in bringing the stock prices of Reliance Comm and Airtel down by 5.7 percent and 2.6 percent during trading hours today.

With investors having approach like 'something's fishy' to the scam wrto Telecom companies and playing safe by selling stocks. It is biggest fall which SENSEX has witnessed in last six trading months.

Other big hit was taken by banking stocks as increased lending rates brought bearish outlook for banking stocks, ICICI bank closed down by 4.4 percent today. Biggest Indian bank SBI also closed down by 2.3 percent whereas HDFC bank closed in red by nearly 2 percent.

Most of the selling was done by foreign players, Thus it is sure that future of Indian stock markets is purely in hands of foreign institutional investors, who will virtually take their money out of Indian markets after they see some more stabilization in US stock Markets.

The 50 component National Stock Exchange's NIFTY closed down by 2.3 percent at 5,766.50.