Partly Cloudy
17°CTue :Showers. High: 20 Low: 9

Sensex down 81 points as IIP, inflation numbers dim rate cut hopes

Sensex down 81 points as IIP, inflation numbers dim rate cut hopes

Mumbai: Falling for the second day, the BSE benchmark Sensex on Tuesday ended 81.29 points lower at 19,564.92 on selling in consumer durables, realty and banking shares as higher-than-expected IIP and rising retail inflation data tempered hopes of an interest rate cut by RBI next week.

Narrowly mixed global cues with downward bias also had a negative impact on the domestic markets, traders said.

After a firm start at 19,697.84, the S&P BSE 30-share Sensex tumbled by 81.29 points, or 0.41 percent to 19,564.92. During trading, it had touched the day’s low of 19,505.75 on heavy selling in interest-sensitive stocks. Yesterday, the index had fallen by 37 points, snapping a four-day upmove.

In Sensex, 21 stocks fell led by HDFC Bank, ICICI Bank, HDFC, Bajaj Auto, L&T and Bhel. Infosys, Bharti Airtel and Tata Power also reported losses. On the gainers side, ITC, RIL and Tata Motors ended higher.

The National Stock Exchange index Nifty today dropped by 28.25 points, or 0.48 percent to end at 5,914.10. It shuttled between 5,952 and 5,893.65 range intra-day.

Barring FMCG and Auto indices, other 11 sectoral indices closed with losses up to 1.99 percent. Consumer durables, power, realty, banking and capital goods suffered the most.

“Higher than expected IIP along with firm CPI number for February may temper the rate cut expectations…,” said Dipen Shah, Head – Private Client Group Research, Kotak Securities.

The RBI mid-quarter policy meeting is scheduled to take place on March 19. Investors are awaiting Wholesale Price Index (WPI)-based inflation data to be released on Thursday for rate cut cues, brokers said.

Earlier in the day, showing green shoots of recovery, industrial production inched up 2.4 percent in January mainly on account of good show by manufacturing and power sectors.

However, retail inflation moved up for the fifth consecutive month to 10.91 percent in February on account of higher prices of vegetables, edible oil, cereals and protein-based items.

Globally, most Asian stocks, except Singapore which inched up by 0.31 percent, ended lower as Chinese shares extended their decline. Key benchmark indices in China, Hong Kong, South Korea, Japan and Taiwan fell by 0.28-1.04 percent.

European markets were also trading either side with small changes as indices in Germany and UK edged up by 0.04 percent and 0.11 percent respectively. France was marginally down.

Back home, 21 stocks in Sensex finished lower while nine ended up. Major losers were Tata Power (3.12 percent), Bharti Airtel (2.13 percent), BHEL (2.12 percent), HDFC Bank (1.79 percent), Sterlite Ind (1.55 percent), Bajaj Auto (1.55 percent), Hero Motocorp (1.27 percent) and Hindalco (1.19 percent).

However, HUL firmed up by 1.16 percent, followed by Tata Motors (0.96 percent) and Jindal Steel (0.62 percent).

Outside benchmark indices, state-run commodity-trading and distribution company, MMTC, shot up by 7.17 percent after an inter-ministerial panel today deferred government’s 9.33 percent stake sale on concerns over valuation.

Among the sectoral indices, the S&P BSE-CD dropped by 1.99 percent, followed S&P BSE-Power (1.36 percent), S&P BSE-Realty (1.24 percent) and S&P Bankex (0.92 percent).

“Soon after the IIP announcement which surprisingly was in positive zone, market showed selling pressure particularly in rate-sensitive sectors,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

The total market breadth continued to show negative trend as 1,688 stocks closed with losses while 1,205 stocks ended with gains. Just 128 scrips ruled steady.

“The Jan IIP are an assertion that growth downturn has bottomed out. However, this is not to indicate that there would be a big bounce in growth as in the previous slowdown cycle immediately after Lehman,” said Indranil Pan, Chief Economist, Kotak Mahindra Bank.

The total turnover rose to Rs 2,068.00 crore from Rs 1,907.59 crore yesterday.

Foreign institutional investors (FIIs) bought shares worth a net Rs 988.22 crore yesterday as per provisional data from the stock exchanges.

 

Top Stories

44895643.cms

Sunny Leone’s Special Birthday surprise For Husband Daniel Weber

October-21-2014
Sunny Leone had masterminded an unique birthday festival for her spouse Daniel Weber in Thailand. A couple of days prior, Daniel had
IndiaTv1611f0_cfc

ISL mentors among a few peering toward India work

October-21-2014
PANAJI: There is life past the commotion and fervor of the Indian Super group, particularly for the mentors on obligation. Most mentors
06-rupee6

Rupee picks up 8 paise against dollar in early trade

October-21-2014
MUMBAI: Extending its climbing streak for the third straight day, the rupee increased in value by 8 paise to 61.28 against the
IndiaTv568462_akhilesh

Akhilesh Yadav the CM of UP gets feel of power crisis

October-21-2014
Lucknow: Uttar Pradesh Chief Minister Akhilesh Yadav and his bureau got a direct knowledge of the dismal force situation in the state
BJP flag

Maharashtra: Congress hits once more at NCP, says will never help Shiv Sena

October-21-2014
New Delhi: Senior Congress pioneer Ajay Maken hit over at National Congress Party boss Sharad Pawar by saying that the gathering will
Virat-Kohli

Kohli claims second spot, Bhuvneshwar breaks into main 10

October-20-2014
Kohli scored 191 runs, incorporating 127 in the last match, in India’s 2-1 arrangement win as he pushed South Africa’s Hashim Amla