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Sensex falls 111 points; closes below 19,500

Last Updated: Thursday, February 14, 2013 - 17:04

Mumbai: Shrugging off positive cues from easing inflation numbers, the BSE benchmark Sensex on Thursday fell by 111 points, snapping a two-day rally, hit by 2-4 percent losses in RIL, Bharti Airtel, SBI, Maruti and Wipro shares.

After a better start at 19639.83, the Sensex tumbled by 110.90 points, or 0.57 percent to 19,497.18 as investors adopted a cautio stance, wiping a major portion of the 147 point gained in past two days.

The broad-based National Stock Exchange index Nifty lost 36 points, or 0.61 percent to 5,896.95, after touching the day's high of 5,940.20.

Bharti Airtel slumped by 4 percent after reports said it faces significant spectrum charge demand by DoT.

Wipro fell by 3.3 percent on selling due to its exclusion from NSE Nifty index from April 1, while Maruti Suzuki lost over 3 percent on being dropped from MSCI India index from February 28.

State Bank of India shares also lost nearly 1.80 percent after a lower-than-expected increase in net profit for the third quarter ended December 31, 2012.

Similarly, RIL and L&T lost over 2.6 percent each.

Declining for the fourth straight month, WPI inflation fell to a 3-year low of 6.62 percent in January but the data failed to spur rate cut hopes.

"After a disappointing IIP numbers but an easing inflation rate, investors are in a state of uncertainty regarding rate cuts in near future," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio Ltd.

A slew of weak third quarter earnings from GVK Power and Tata Steel also dampened the market sentiment.

Sectorally, the capital goods sector suffered the most by falling 2.27 percent, followed by oil and gas index 1.59 percent, auto index 1.49 percent and power index 1.25 percent.


First Published: Thursday, February 14, 2013 - 17:01
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