New Delhi - Soaring crude oil prices and inflation along with political uncertainty pulled down Indian markets Tuesday with both of the major share indices recording declines of over 3.5 per cent. The Bombay Stock Exchange's sensitive 30-share Sensex dipped by 3.71 per cent to touch 12,961.68 points while the broader 50-share Nifty of the National Stock Exchange closed at 3896.75, down by 3.56 per cent.
This is the first time the Sensex closed below the 13,000 level and the Nifty below 3900 since April 2007.
Heavy selling was seen across sectors with realty, banking and metal counters the big losers of the day.
The markets saw major declines for the second day running with a drop of over 2.3 per cent on Monday.
Analysts said the current domestic political uncertainty was having a sentimental impact on the market. The leftwing parties supporting India's ruling United Progressive Alliance (UPA) government on Sunday threatened to withdraw support if Prime Minister Manmohan Singh pushes ahead with the controversial civilian nuclear deal with the United States.
