Sensex hits new 2-month low on weak IIP numbers
Mumbai: The BSE benchmark Sensex on Wednesday fell by nearly 102 points to hit a new two-month low, led by fall in consumer durable and metal sector stocks as weak factory output and sticky inflation dented hopes of a rate cut by RBI next week.
In volatile trade, the 30-share index commenced the day on a weak note and improved during intra-day to 19,143.13 with rupee improving against the dollar.
However, it failed to carry the momentum and closed 101.87 points, or 0.53 percent, down at 19,041.13, its lowest level since April 18.
Similarly, broad-based National Stock Exchange Nifty setled lower by 28.60 points, or 0.49 percent, at 5,760.20.
Also, MCX-SX flagship index, SX40, ended 85.75 points lower, or 0.75 percent, at 11,281.59.
Brokers said the trading sentiment dampened after industrial output growth slowed to 2 percent in April and retail inflation dropped marginally to 9.31 percent in May from 9.39 percent in April.
They said a weakening trend in global markets on concerns that central banks from Tokyo to Washington increasingly reluctant to add stimulus, further influenced the market.
Out of the 30 index shares of Sensex, 20 stocks were down led by Tata Power ending as the biggest loser of the day falling 3.03 percent to settle at Rs 80.05, followed by bluechips Coal India and Tata Steel, down 2.69 percent and 2.61 percent to Rs 303.30 and Rs 274.15, respectively.
Software exporting companies stocks fall as the government considered measures to stabilise the rupee after it hit an all-time low of 58.38 yesterday.
The second heaviest on the benchmark Infosys fell by 2.02 percent to Rs 2,423.95 and TCS by 2.06 percent to Rs 1,467.85.
Banking stocks declined as higher retail inflation and weakening rupee left less chances of interest rate cut by the Reserve Bank on June 17, led by Axis Bank falling 3.32 percent to Rs 1,276.60.
Sectorally, the consumer durable index suffered the most by losing 7.37 percent to 6,271.83, followed by metal index by 1.75 percent to 7,836.83 and IT index lost 1.45 percent to 6,069.56.
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