Sensex erases early gains as inflation trebles
Markets closed flat with the BSE benchmark Sensex settling the day lower by over 21 points after erasing early gains.business Updated: Dec 14, 2009 18:52 IST
Markets on Monday closed flat with the BSE benchmark Sensex settling the day lower by over 21 points after erasing early gains.
The 30-share Sensex, which rose to 17,275.19 during the day, fell by 21.48 points to close at 17,097.55.
The 50-stock National Stock Exchange index Nifty fell by 11.60 points to 5,105.07.
Marketmen said selling pressure mounted following a spurt in monthly inflation which trebled to 4.78 per cent in November against 1.34 per cent a month ago, driven by rising prices of food items like pulses, fruits and vegetables.
A mixed trend in overseas markets also influenced the trading sentiment to some extent.
Brokers said rising inflation might prompt the Reserve Bank to signal hike in interest rates.
They said foreign funds booking profits before calendar year end also supported the downtrend.
Among the 30-BSE indexes related stocks, 17 closed with losses while 13 rose. The major losers during the day were consumer durables, bank and metal stocks.
Howver, rise in stocks of Information Technology, Capital Goods, Auto, PSU, Power, Healthcare, Teck and Oil and Gas saved the market from any major fall.