Sensex down 44 points; IT stocks fall

Sensex down 44 points; IT stocks fall

Sensex down 44 points; IT stocks fall

Brushing aside rate cut hopes fuelled by soft inflation and IIP data, the benchmark BSE Sensex today fell by 45 points to 27,206.06 on profit-booking in export-oriented stocks such as Infosys and TCS after rupee staged a comeback against the dollar.

Sentiment continued to remain bearish on concerns over muted Q4 earnings, delay in key reform bills in Parliament and forecast of a subdued monsoon, brokers said.

At the forex market, rupee surged more than 35 paise against the dollar (intra-session).

Meanwhile, A data today showed Wholesale Price Index (WPI) inflation declined to a new low of (-) 2.65 per cent in April.

With inflation dropping to a new low in April, India Inc has reaffirmed demand for a rate cut, saying it provides ample space for the RBI to slash the key policy rate.

As a result, investors went on a buying spree, leading to a rise in the broader market. The BSE mid-cap and small-cap indices closed up around 0.89 and 0.92 per cent, respectively.

The 30-share BSE index slipped below the 27,000-mark in early trade to hit a session low of 26,948.62 as heavy-weights succumbed on profit-booking after yesterday's gains.

On gains in Hindalco, SBI, Bajaj Auto and Tata Steel stocks trimmed most of losses and the index settled with a fall of 45.04 points or 0.17 per cent at 27,206.06.

The NSE Nifty too edged lower by 11.25 points or 0.14 per cent to end at 8,224.20. Intra-day, it cracked the 8,200-mark to touch a low of 8,137.30.

"Volatility continued on the fourth consecutive day in a row and key benchmark indices closed with small losses. Market trimmed losses in late trade after languishing in negative zone almost throughout the trading session," said Jayant Manglik, President-retail distribution at Religare Securities.

Selling was mostly observed in IT, consumer durables, teck, capital goods and healthcare shares, while realty, oil&gas, auto, metal and power counters were in demand.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)