Mumbai, Nov 14 (PTI) The market topped the key 33,000
level multiple times today, but closed below that threshold
after rising inflation numbers squeezed the headroom for an
interest rate cut at RBI’s policy review next month.
Inflation at the wholesale level raced to a 6-month high
of 3.59 per cent in October, fuelled by food articles, data
released today showed. Retail or CPI inflation, which came in
yesterday, had jumped to a 7-month high of 3.58 per cent in
Not sure which way to move, the Sensex changed its course
many a time during the day, before it settled at 32,941.87 —
a three-week low, down 91.69 points, or 0.28 per cent.
The index had a fall of 281 points yesterday.
The broader 50-share NSE Nifty met with the same fate,
dropping 38.35 points, or 0.38 per cent, to close at 10,186.60
after shutting between 10,248 and 10,175.55.
“Rise in inflation numbers and weakness in Asian peers
blunted the expectations of a recovery and domestic market
remained range-bound. Persistent weakness in the rupee also
weighed down investors’ sentiment,” said Anand James, Chief
Market Strategist, Geojit Financial Services.
Analysts say jump in Brent crude price to nearly USD 64
has also dented the chances of a rate reduction at the Reserve
Bank’s December policy meet.
Uncertainty over US tax reform, slowdown in Chinese
factory output and growing political issues in the UK weaned
investors away from placing more bets.
L&T bled the most, falling 2.46 per cent, followed by
PowerGrid, Asian Paints, TCS and ONGC.
Hero MotoCorp, Axis Bank, Bajaj Auto and M&M counters,
however, saw buying activity.
The loss in BSE capital goods was maximum at 1.41 per
cent, followed by telecom, infrastructure and PSU.
Share sale by foreign portfolio investors (FPIs) was
worth a net Rs 233.58 crore yesterday, provisional data
showed. Domestic institutional investors (DIIs) also let go of
shares net Rs 268.77 crore.
Weakness rubbed off on broader markets, with mid-cap and
small-cap indices falling by up to 0.22 per cent.
This is published unedited from the PTI feed.