Sensex down 48 points on interest rate concerns
The Bombay Stock Exchange benchmark Sensex fell for the fourth straight day today, losing over 48 points on fund-based selling over concerns that RBI might raise interest rates to curb rising inflation.business Updated: Apr 16, 2010 17:34 IST
The Bombay Stock Exchange benchmark Sensex fell for the fourth straight day on Friday, losing over 48 points on fund-based selling over concerns that RBI might raise interest rates to curb rising inflation.
The Sensex, which lost nearly 295 points in the last three trading sessions, fell further by 48.08 points to 17,591.18, after touching the day's low of 17,529.55.
Similarly, the wide-based National Stock Exchange index Nifty fell by 11 points to 5,262.60. During the day it reached a low of 5,237.55 and a high of 5,283.05 points.
Selling pressure gathered momentum on fears that the RBI may increase borrowing cost in its policy meeting on April 20 to check inflation, which is at a 17-month high.
Inflation continues to be a matter of concern and needs policy action to contain it, although prices are expected to start falling slowly over the next two to three months, chief economic adviser Kaushik Basu said earlier in the day.
The benchmark posted its first weekly fall after nine weeks of gains when it crossed 18,000 points after more than 25 months. The fall was led by Reliance Industries and Infosys Technologies.
In the 30-BSE index components, 22 closed with losses and eight ended in positive zone.
Reliance Industries fell by Rs 6.95 to Rs 1,083.30 and Infosys by Rs 15.75 to Rs 2,785.80. The two carry nearly 23 per cent weightage on the Sensex.