Sensex hits 3-year low as negative sentiment rules

The benchmark index Sensex fell almost 3 per cent and closed at 8,197, a three-year low, while the broader 50-stock Nifty was down 2.59 per cent, closing at 2,576.

Even the seven-year low inflation rate of 3.03 per cent for the week ended February 21 failed to boost the market sentiment, said analysts.

Reasons for the fall

• Weak Global Equity market
• Continuous FIIs pullout
• Widening Fiscal ficit at 6% of GDP
• Fears of sovereign downgrade by S&P and Moody's

Measures that didn't help

• All the three stimulus packages
• Even the recent sop to export sector
• The US stimulus package
• Rate cuts by central banks across the world.