The BSE benchmark Sensex on Thrusday fell 148 points on fresh selling in blue-chips, especially interest sensitive stocks, as food inflation jumped over double-digit and sparked fears of rate hikes amid weak markets globally.
The Bombay Stock Exchange 30-share Sensex, which had gained 337 points yesterday, fell 148.45 points to 16,936.89, after touching a low of 16,744.99.
The broad-based National Stock Exchange index Nifty lost 47.25 points to 5,091.90. It touched an intra-day low of 5,033.95.
Trading sentiment dampened as food inflation rose to 10.60% for the week ending October 8, compared to 9.32% in the previous week, raising concerns of further interest rate hike by the Reserve Bank in its policy review on Tuesday.
RBI has raised borrowing rates a dozen times since March 2010 to tame inflation, crimping corporate earnings.
A lower closing in the Asian region and weak openings in Europe further influenced the market sentiment. The European stocks fell as splits emerged among the region’s leaders on a plan to end the euro-zone debt crisis.
Investors also reduced their pending positions as the monthly derivatives contracts expiry was brought forward by two days to October 25 due to Diwali holidays.
{{/usCountry}}Investors also reduced their pending positions as the monthly derivatives contracts expiry was brought forward by two days to October 25 due to Diwali holidays.
{{/usCountry}}The realty sector index suffered the most, down 2.04% at 1,808.52. Auto index lost 1.50% to 8,865.49.
The Banking sector index fell 0.86% to 11,169.27 as private lender ICICI Bank fell 2.89% and HDFC bank by 0.33%.
In all, 22 of the 30 Sensex stocks closed with losses, while eight ended in the green.