Mumbai: Stock markets tumbled for the second day in a row on Friday with the BSE Sensex losing another 275 points to reach 16,213.46 amid the government lowering GDP growth forecast and weak Asian markets as concerns persisted over the euro-zone debt crisis.
Citing global and domestic factors, the government on Friday lowered the GDP growth forecast for the current fiscal to 7.5 percent from 9 percent.
Finance Minister Pranab Mukherjee said that surging food and fuel prices as well as weak global economic growth are adversely impacting GDP growth.
The government also said it will not be easy to restrict the fiscal deficit to 4.6 percent in 2011-12 on account of uncertainty on the disinvestment front and a likely increase in subsidies.
The sell-off was so strong that all the 13 sectoral indices fell by up to 2.58 percent. Capital Goods, Auto, Refinery, Power, Realty, FMCG and banking sectors came under heavy selling pressure.
The BSE 30-share index, Sensex opened lower and dropped further to 16,142.32 before ending at 16,213.46 -- down 274.78 points or 1.67 percent. On Thursday, it had tumbled nearly 389 points or 2.30 percent. Thus, it has recorded the biggest 2-day fall since September 23.
The NSE 50-share Nifty also dropped 76.95 points or 1.56 percent to close at 4,866.70.
Asian markets ended lower on persisting worries over the euro-zone debt crisis. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan fell by up to 2.73 percent.