Sensex falls about 150 points, Nifty tests 7,950

The S&P BSE Sensex sheds about 200 points in afternoon trade, thanks to weak European markets that were on track to record their worst monthly fall in four years. The German DAX fell over 1 per cent, followed by CAC 40 and Euro Stoxx. FTSE 100 index buck the weak trend, gaining about a per cent. The 50-share Nifty index was testing its crucial psychological level of 8,000. The losses on the benchmark indices were led by index heavyweights such as HDFC, ITC and ICICI Bank. Overall, the market breadth was negative, with six out of every 10 BSE stocks trading in the red. India VIX, the fear gauge, was trading 4 per cent higher, signalling increased volatility in next 30 days. The S&P BSE Midcap index edged 0.2 per cent higher, while the S&P BSE Smallcap index fell 0.05 per cent, according to a news agency.

-Shuvo-