Sensex dips over 590 pts at mid-session

The Bombay Stock Exchange (^BSESN : 16033.08 -9.1) benchmark sensex tumbled over 590 points in mid-session on frantic selling by funds on weakening global trend after Dubai's attempts to delay debt payment.

After losing 344 points in the previous session, the sensex plunged further by 590.07, or 3.45 per cent to 16,264.86 at 1300 hrs, with banking and realty stocks losing hefty ground.

Similarly, the wide-based National Stock Exchange (^NSEI : 4781.85 -10.8) index Nifty toppled by 176.55 points, or 3.29 per cent to 4,829.00.

Reliance Industries (RELIANCE.NS : 990.2 -3.05) fell 4.78 per cent to Rs 1,013.70, ICICI Bank (ICICIBANK.NS : 808.05 -4.35) slid 4.41 per cent to Rs 827.30 and State Bank of India (SBIN.NS : 1935 -15.3) fell by 3.95 per cent to Rs 2,164.

All the other shares on the measure also fell leading to a 3.3 per cent slide this week, its first weekly decline in four.

Dubai has borrowed 80 billion dollar during the four-year construction boom to transform its economy into a regional tourism and financial hub, but the government's plan to delay debt repayment sent markets across the world into a tizzy on fears of fresh financial trouble.

Larsen and Toubro, the largest engineering company, fell 4.89 per cent to Rs 1,550.90 following reports the company has some investment in Dubai.