Sensex ends 88 points down on rate hike fears as inflation rises
Extending its losing streak, the BSE benchmark Sensex on Wednesday declined over 53 points in early trade on sustained selling by funds after weak cues from CPI and IIP data.mumbai Updated: Nov 13, 2013 23:29 IST
The benchmark Sensex fell for the seventh straight session and ended 88 points lower in choppy trade on Wednesday after a rise in retail prices spurred worries the RBI would increase rates again to contain inflation.
Weak global cues on fresh talk of the US tapering its stimulus also kept the market under pressure.
Realty, FMCG, IT and banking sector stocks declined, while auto counters were in demand after decent Q2 results by Mahindra & Mahindra.
ITC, HDFC Bank and TCS were among the shares that dragged the index lower, while Tata Motors and Mahindra supported it.
The biggest losers included GAIL India, Cipla and Sesa Sterlite.
The 30-share S&P BSE Sensex moved erratically in a range of 20,161.64 to 20,365.59 before ending at 20,194.40, a fall of 87.51 points or 0.43%. It's at the lowest level since October 8.
The index has lost 1,044.96 points in the past seven sessions, its longest losing streak since the eight days ended August 2, when it declined 1,138.11 points.
The 50-share CNX Nifty on the National Stock Exchange declined 28.45 points, or 0.47%, to end at 5,989.60. The SX40 index on the MCX Stock Exchange fell 84.36 points to end at 12,002.12.
Inflation as measured by the consumer price index rose to 10.09% in October, entering double digits after seven months, according to government data released after market hours yesterday.
To contain inflation, the Reserve Bank of India increased a key rate on October 29 for the second time since Raghuram Rajan took over as Governor on September 4.
Industrial production grew 2% in September, mainly on account of better performance in the power and mining sectors.
Asian stocks closed down after China's leaders failed to outline economic reforms and on bets the US Federal Reserve would start easing its stimulus next month.