Sensex falls 56 pts to 2-wk low, WPI inflation data raises RBI rate hike risk

BSE SensexThe benchmark BSE Sensex index fell 0.24 percent and the broader NSE index ended down 0.2 percent, marking their lowest close since Nov. 28. AP

Falling for the fifth day in a row, the benchmark BSE Sensex today dropped by 56 points to end at over two-week low as November WPI inflation data cemented fears of a rate hike by the RBI in its policy review meeting this week.

Markets Top Gainers, Markets Top Losers

Oil & gas, auto and FMCG shares saw selling while buying was seen buying in IT, consumer durables and healthcare.

After shedding 281 points last week, the Sensex fell further by 56.06 points, or 0.27 per cent to end at 20,659.52.

The 30-share index, which was today dragged lower by losses in Reliance Industries (RIL), HDFC Bank and Sun Pharmaceuticals Industries shares, has now lost 667 points in five straight sessions to end at its lowest level since November 28 when it had ended at 20,534.91.

The broad-based National Stock Exchange NSE Nifty index fell by 13.70 points, or 0.22 per cent, to 6,154.70, after touching the day's high of 6,183.25.

Costly vegetables, particularly potato and onion, pushed the November wholesale inflation to a 14-month high of 7.52 per cent. Last week, government data showed November retail inflation spiked to above 11 per cent.

"Market participants are widely expecting a 25-bps point repo-rate hike on December 18 policy, taking the repo rates to April 2012 levels... there are (also) a lot of speculations with regard to the overseas meeting that will decide the fate of the QE status," said Vishal Jajoo, Senior Research Analyst (PCG), Nirmal Bang Securities.

A weakening trend in Asia after Chinese manufacturing data missed market estimates and speculation that the Federal Reserve might taper its stimulus this week, also affected domestic activity, dealers said.

Infosys surged to an almost 3-year high and Wipro also touched multi-year highs. Sesa Sterlite soared 4.5 per cent.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus