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Rediff.com  » Business » Sensex slips to over 10-day low on rising inflation, weak rupee

Sensex slips to over 10-day low on rising inflation, weak rupee

Last updated on: June 16, 2014 16:52 IST

ReutersThe benchmark Sensex on Monday fell for the second session and ended 37.69 points down at 25,190.48, its lowest level in over ten days, as banking shares slipped after May wholesale inflation surged, amid a weak rupee.

Besides, rising crude oil prices in global markets on escalating tensions in Iraq further dampened hopes of a rate cut by the RBI as WPI inflation in May rose to 5-month highs.

Wholesale price index (WPI) based inflation climbed to 6.01 per cent in May, up from 5.20 per cent a month ago.

Profit-booking and selling pressure on below-normal monsoon forecast, marred sentiments, traders said.

In choppy movements, the 30-share BSE barometer resumed 34 points lower in line with weakness in Asian stocks. It declined further to a low of 25,063.93, down over 160 points at one stage, but rebounded to 25,268.41.

The slight recovery was on the back of rise in select stocks. It closed at 25,190.48, down 37.69 points, or 0.15 per cent. The index had lost 348.04 points on Friday.

Today's Sensex close is lowest since 25,019.51 on June 5.

The NSE 50-issue CNX Nifty also ended 8.55 points, or 0.11 per cent, down at 7,533.55 after shuttling between 7,487.55 and 7,548.60 intra-day.

Meanwhile, crude oil climbed to nine-month high, with West Texas Intermediate trading higher at $107.26 a barrel for delivery in July in Asian trade, as the escalation of violence in Iraq stoked concern that supplies will be hit.

Foreign portfolio Iinvestors bought shares worth a net Rs 1,099.92 crore last Friday, as per the provisional data.

Prominent Sensex losers were Larsen and Toubro 2.08 per cent, Reliance Industries 1.61 per cent, ICICI Bank 0.97 per cent, Axis Bank 2.92 per cent and SBI 1.04 per cent.

Dr Reddy's Lab, HDFC, Mahindra and Mahindra, Maruti Suzuki, NTPC, Tata Motors and Tata Steel also dipped.

On the other hand, IT stocks caught buyers' fancy after the rupee dipped below the 60 mark against the dollar.

Bucking the overall negative trend, IT index gained 1.54 per cent with all the three top IT stocks TCS, Infosys and Wipro ending higher.

Sector wise, the BSE capital goods suffered the most by losing 1.16 per cent, followed by auto index 1.07 per cent and banking index 0.52 per cent.

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