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Sensex down 121 points on weak global cues

 

AGENCIES | Mumbai, December 14, 2011 19:09
Tags : Sensex down | BSE Sensex fell 121 points | Sensex falls on weak global cues |
 

The BSE Sensex fell 121 points to 15,881.14 on Wednesday on across-the-board selling amid investor concerns over high inflation, the rupee hitting new low and weak cues from global markets.

Selling pressure was wide-spread and barring FMCG, all the sectoral indices led by realty, metal, power and auto fell by up to 2.42 per cent.

In high volatility, the BSE 30-scrip index, Sensex, which had jumped to intra-day high of 16,133.41, slipped into the red after the inflation data was released. It closed at 15,881.14, down 121.37 points or 0.76 per cent.

The NSE 50-share index Nifty declined 37.35 point or 0.78 per cent to end at 4,763.25.

The overall inflation eased to 9.11 per cent in November from 9.73 per cent in the previous month, but analysts said it was still too high for comfort. It made investors cautious ahead of RBI's monetary policy meet. The central bank has raised lending rates 13 times since March, 2010 to tame inflation.

This, coupled with the rupee touching a new low against the US dollar, hit investor sentiment hard.

"Markets traded with a downward bias after the inflation data was announced on Wednesday. The Indian rupee falling to fresh all-time low, too, impacted the investors' sentiment," said Milan Bavishi, Head Research, Inventure Growth and Securities.

Besides, Asian and European stocks were weak on concerns over slowdown in global economic growth.

FIIs sold shares worth Rs 560.80 crore on Tuesday as per the provisional data from the stock exchanges.

Analysts said investors will remain cautious ahead of the RBI monetary policy on Friday.

"The market could stay nervous in anticipation of a move from the RBI. However, if the RBI stance is still aggressive on Friday, we could see a big negative impact on the markets in the following week," Kislay Kanth Senior Director Research MAPE Securities said.

Globally, key indices in the UK, France, and Germany were down by up to 0.94 per cent in the afternoon deals. In Asia, China, Hong Kong, Japan, Singapore, and South Korea fell by up to 0.89 per cent, while index in Taiwan rose by 0.38 per cent.

The total market breadth on the BSE continued to remain negative as 1,626 stocks ended with losses, while 1,080 stocks finished with gains. The total turnover fell to Rs 1,929.75 crore from the Tuesday's closing level of Rs 2,066.59 crore.

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Issue Dated: Feb 5, 2017