Sensex dips 10 pts on monsoon worries
The BSE benchmark Sensex on Wednesday closed nearly ten points lower at 17,550.63, as investors reduced their holdings in consumer goods' stocks on fears that a below normal monsoon would affect rural income and thereby the spending on such goods.business Updated: Jun 22, 2011 16:58 IST
The BSE benchmark Sensex on Wednesday closed nearly ten points lower at 17,550.63, as investors reduced their holdings in consumer goods' stocks on fears that a below normal monsoon would affect rural income and thereby the spending on such goods.
The Bombay Stock Exchange index Sensex, which had risen 118 points before paring off its gains in the choppy trade on Wednesday, settled marginally lower on monsoon fears amid a mixed market overseas.
However, the broad-based National Stock Exchange index Nifty edged up 2.45 points to 5,278.30, after moving in the range of 5,310.50 and 5,262.50.
Brokers said consumer durables sector lost the most as less rains would impact farm output and consequentially the purchasing power from rural areas, besides slowing down the overall economic growth.
"Less rains may reduce farm output and reduce demand for households items such as fridge, two-wheelers and tractors by the people living in rural areas," said Delhi-based broker Manoj Choraria.
Consumer durables index shed 3.83 per cent to 6,389.87 with FMCG giant Hindustan Unilever losing 3.42%, Titan Industries 6.23 per cent and Blue Star 2.85%.
Market leader Reliance Industries (RIL) fell Rs 2.40 to Rs 846.10. However, IT bellwhether Infosys that gets nearly 20% of its revenue from Europe, rose 0.79% after Greece rescue became tangible, with the country passing the austere deficit-cut proposals in its parliament.
BHEL, Bajaj Auto, Cipla, M&M, L&T, Tata Power and Wipro were among other gainers, while Maruti Suzuki, Hero Honda, Tata Motors, Bharti Airtel, Tata Consultancy, Reliance Infra, State Bank of India and Jindal Steel lost.
First Published: Jun 22, 2011 09:50 IST