Stock markets fall before inflation data, Sensex drops 235 points
Delhi Delhi. Stock market benchmark indices Sensex and Nifty fell on Thursday due to selling pressure in key indexes Reliance Industries, L&T and HUL as investors took a cautious stance ahead of the announcement of inflation data. Besides, weakness in rupee and outflow of foreign funds weighed on investor sentiment, traders said.
The 30-share BSE benchmark Sensex closed 236.18 points or 0.29 per cent lower at 81,289.96. During the day’s trade, it fell 314.5 points or 0.38 per cent to 81,211.64. The NSE Nifty fell 93.10 points or 0.38 per cent to 24,548.70. Prashant Tapase, Senior Vice President (Research), Mehta Equities Ltd, said, “Investors traded cautiously and continuously cut their equity bets ahead of the announcement of inflation and IIP data. Global uncertainty, fund outflows due to rising US bond yields and continued conflict in the Middle East and West Asia have led to lack of confidence among investors.”
Among the 30-share Sensex pack, blue-chip firms NTPC, Hindustan Unilever, Tata Motors, Maruti, Larsen & Toubro, Reliance Industries, Asian Paints and State Bank of India were the biggest losers. Bharti Airtel, IndusInd Bank, Tech Mahindra, Infosys, Adani Ports and Tata Consultancy Services gained.
Ajit Mishra, Senior Vice President (Research), Religare Broking Ltd, said, “The market closed marginally lower on the weekly expiry day, declining nearly half a percent amid mixed cues. The market awaits fresh catalysts for its comeback, while rotational buying in key sectors like IT and banking keeps hopes of recovery alive.” The BSE Smallcap index fell 1 percent, while the Midcap index declined 0.56 percent. FMCG declined 1.15 percent, followed by Energy (1.03 percent), Industrials (0.83 percent), Consumer Discretionary (0.81 percent), Oil & Gas (0.73 percent) and Auto (0.70 percent). IT, Utilities, Tech and BSE Focused IT registered gains. Vinod Nair, Head of Research at Geojit Financial Services, said, “The market remained range bound ahead of domestic CPI data and a weakening rupee. While inflation is expected to ease, investors are keeping a close watch on vegetable prices, which will determine the future interest rate direction. Meanwhile, the Nifty IT index hit a new high after US inflation data came in as per expectations, raising hopes of an interest rate cut by the Fed next week.” In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong closed in the green. European markets traded with a mixed trend. Wall Street closed mostly higher in overnight trade on Wednesday.
