Sensex falls on inflation concern; RIL, banks take a hit
Falling for the fifth day in a row, the BSE benchmark Sensex today dipped by 77 points on profit selling by funds in bluechips following spurt in inflation.business Updated: May 14, 2012 16:31 IST
Falling for the fifth day in a row, the BSE benchmark Sensex on Monday dipped by 77 points on profit selling by funds in bluechips following spurt in inflation.
The fall was led by Reliance Industries, which declined to a 52-week low on sustained selling. Besides, the banking sector stocks fell as inflation rose during April, reducing chances of a cut in interest rates.
The Sensex, which has lost nearly 620 points in the last four sessions, fell further by 77.14 points, or 0.47%, to 16,215.84.
Traders said selling emerged as inflation moved up to 7.23% in April from 6.89% in March.
The broad-based National Stock Exchange index Nifty fell by 21.10 points, or 0.43%, to 4,907.80, led by refinery, banking and realty sector stocks.
Sensex heavyweight RIL tumbled by 2.32% to Rs. 681.15, while shares of country's largest lender State Bank of India fell 0.65% to Rs. 1,840.20 and HDFC Bank declined 2.02% to Rs. 500.50.
Other losers of the index kitty were BHEL, DLF, ICICI Bank, ONGC, Tata Motors, Tata Steel, Tata Consultancy Services, Sterlite Industries, HDFC Ltd, NTPC and Jindal Steel.
The oil and gas sector index suffered the most with a loss of 1.69% to 7,420.47, followed by banking index fell by 1.61% to 10,661.64.
Realty index lost 1.27% to 1,541.89 and Power index by 0.79% to 1,808.48.
Bucking the trend, Larsen and Toubro gained 1.84% to Rs.1,159.80 on fresh buying following strong quarter earnings.