-6°CSun :Sunny. High: 10 Low: 3

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


Vikas Swarup, the Oscar winning ‘Slumdog Millionaire’ author selected as the new MEA representative

Noted writer Vikas Swarup, who made his presentation with the success novel “Q&A” (on which Slumdog Millionaire was based) is the new

Now shop on Flipkart, Snapdeal on zero investment EMIs

India’s eCommerce space is buzzing with new dispatches and key declarations in the most recent two days. On Tuesday, we heard how

Bajaj Pulsar RS200 Vs Hero Karizma ZMR and KTM Duke 200

The most recent portion in Bajaj Auto’s tremendously anticipated arrangement Pulsar – RS200 – has been dispatched at Rs. 1.1 lakh (non-ABS

AAP Crisis : Kumar Vishwas asks Bhushan and Yadav to quit nimbly

Aam Aadmi Party (AAP) leader Kumar Vishwas on Friday approached senior gathering pioneers Prashant Bhushan and Yogendra Yadav to leave the gathering
A portrait of the Facebook logo in Ventura

Facebook talks up requirement for virtual reality, huge tech wagers

Virtual reality, counterfeit consciousness and automatons will empower Facebook Inc to make a more similar and helpful informal community, the organization said

India had a dazzling World Cup: If Times Now can’t see that, they don’t know cricket

India might never again be one-day title holders yet MS Dhoni and his happy men in blue have issued us numerous motivations