Sensex falls 121 pts on inflation, growth concerns
The Sensex, which had gained 132 points in the previous session, moved between 16,133.41 and 15,855.12 before closing 121.37 points down at 15,881.14.business Updated: Dec 14, 2011 17:30 IST
After a choppy trade, the Bombay Stock Exchange benchmark Sensex dipped 121 points amid inflation persisting at a high level, the rupee falling to record low and a weak trend in the global markets.
The Sensex, which had gained 132 points in the previous session, moved between 16,133.41 and 15,855.12 before closing 121.37 points down at 15,881.14.
The broad-based National Stock Exchange index Nifty lost 37.35 points to close at 4,763.25.
Fall in Asian stock markets and lower openings in Europe on investor concerns over slow growth in major economies pulled down the investor sentiment.
Brokers said the inflation remaining high at 9.11% in November remained a matter of concern.
Besides, finance minister Pranab Mukherjee said the government has limited options to combat the slowdown. Major economies worldwide, particularly those in Europe, have not yet emerged from the slowdown in late 2008 despite the aggressive use of fiscal and monetary tools, he said.
Selling pressure was wide-spread as barring FMCG, all the sectoral indices led by realty, metal, power and auto fell by up to 2.42%.
Investor confidence was hit further as the rupee touching a record low of 53.75 against the US dollar, triggering fears that it would fuel inflation and boost the cost of imports as well as foreign currency debt.
Major market players remained cautious ahead of the Reserve Bank of India policy review on December 16. RBI has raised its lending rates 13 times since March, 2010.
Sensex has plunged 22% this year on concern of a weak rupee, record interest-rate hikes and global economic uncertainties.
First Published: Dec 14, 2011 09:50 IST