Mumbai, May 19 - Stocks: The BSE benchmark sensex continued its downslide for the fourth week in a row, dropping by another 140 points to finish at 16,152.75 due to persistent selling pressure in view of various negative external as well as internal factors.
Global debacle on euro-zone worries amid weakening rupee to a fresh historic low cast a pall over the benchmark sensex which tumbled below 16K-mark after four months.
The main reason for the world stock markets disaster was Greece which failed to form a government would force new elections in the country amid concerns that elections will ultimately lead to the country leaving the euro zone, sending global stocks to a tail-spin.
Asian shares fell steeply on euro-zone debt worries after more signs emerged of growing instability among Spanish banks and political turmoil in Greece, with the latest sluggish economic data from the United States adding to the list of risks for investors.
Internal factors like rise in inflation (WPI), retail inflation and fiscal deficit amid falling Indian rupee to a new historic low further aggravated the situation. High inflation dashed hopes of rate cut by the central bank.
Inflation, as measured by the Wholesale Price Index (WPI), moved up to 7.23 per cent in April from 6.89 per cent in March on account of spurt in prices of vegetables, meat, milk and pulses, although onion and fruits showed a declining trend. Retail inflation also spurted to double digit mark to 10.36 per cent in April from 9.38 per cent in March. PTI