Sensex crashes by 506 points

The rising concern over oil prices and inflationary pressures hit the stock markets again and the benchmark Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) lost 506.08 points or 3.25 per cent at 15066.10. Realty stocks are the major losers with 7.38 per cent drop followed by IT (4.21 per cent), oil and gas (3.29 per cent) and bank (3.21 per cent).

On the National Stock Exchange, the broader 50-share Nifty lost 126.85 points to close at 4500.95 against the previous close of 4624.80.

Rising crude oil prices is a major concern for the stock markets and the price of oil ruled high on Monday too at $137.7 a barrel. It surged to an all time high of $139.12 last Friday. Further, an increase in U.S. unemployment rate dampened sentiment on the bourses in the U.S. and other parts of the world. The U.S. markets are deeply affected by fears of a recession amid investor worry over further credit tightening while home values deteriorate.