Mumbai, Aug 16 (PTI) Market benchmark Sensex declined 88 points to close at 28,064.61 on Tuesday as investors cut down their bets after industrial output growth slowed down to 2.1 per cent in June and inflation hits two-year high.
Lower international advices following a sharp rally in the yen and disappointing Japanese second-quarter GDP figures also hit investor sentiment.
An official data on Friday showed industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods.
Besides, retail inflation shot up to nearly two-year high of 6.07 per cent in July, well above RBI's comfortable level, on surge in prices of food items as demand for sugar, oil & fats and spices rose ahead of the festival season.
WPI inflation today hit a 23-month high of 3.55 per cent in July.
"Markets have begun to refocus on macros, and the first of those have disappointed. Both the CPI and WPI have diminished chances of a rate cut in October," said Anand James Chief Market Strategist, Geojit BNP Paribas Financial Services.
The BSE Sensex resumed higher at 28,190.04 and hovered in a range of 28,199.10 to 27,942.65 before closing at 28,064.61, showing a fall of 87.79 points or 0.31 per cent. The gauge had gained 377.52 in the previous two sessions.
The 50-issue Nifty fell 29.60 points or 0.34 per cent to close at 8,642.55. Intra-day, it hovered between 8,682.35 and 8,600.45.
Shares of Unitech slumped 16.91 per cent after the real estate firm expressed inability before the Supreme Court to refund money to the home buyers over its two delayed projects in Noida and Gurgaon.
Stock of Infosys slipped 1.16 per cent to Rs 1,050.95 after the tech major announced it will ramp-down about 3,000 jobs, following Royal Bank of Scotland's decision to cancel a project to set up a separate bank in the UK.
Overseas, Asian stocks ended lower as the price of crude oil took a breather from a three-day rally. Japanese stocks fell by 1.62 per cent as the yen strengthened against the dollar.
Other indices like China, Hong Kong, Singapore, South Korea and Taiwan moved down by 0.09 per cent to 0.49 per cent.
European also edged lower key indices in France, Germany and the UK down between 0.04 per cent and 0.13 per cent.
Lower international advices following a sharp rally in the yen and disappointing Japanese second-quarter GDP figures also hit investor sentiment.
An official data on Friday showed industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods.
Besides, retail inflation shot up to nearly two-year high of 6.07 per cent in July, well above RBI's comfortable level, on surge in prices of food items as demand for sugar, oil & fats and spices rose ahead of the festival season.
WPI inflation today hit a 23-month high of 3.55 per cent in July.
"Markets have begun to refocus on macros, and the first of those have disappointed. Both the CPI and WPI have diminished chances of a rate cut in October," said Anand James Chief Market Strategist, Geojit BNP Paribas Financial Services.
The BSE Sensex resumed higher at 28,190.04 and hovered in a range of 28,199.10 to 27,942.65 before closing at 28,064.61, showing a fall of 87.79 points or 0.31 per cent. The gauge had gained 377.52 in the previous two sessions.
The 50-issue Nifty fell 29.60 points or 0.34 per cent to close at 8,642.55. Intra-day, it hovered between 8,682.35 and 8,600.45.
Shares of Unitech slumped 16.91 per cent after the real estate firm expressed inability before the Supreme Court to refund money to the home buyers over its two delayed projects in Noida and Gurgaon.
Stock of Infosys slipped 1.16 per cent to Rs 1,050.95 after the tech major announced it will ramp-down about 3,000 jobs, following Royal Bank of Scotland's decision to cancel a project to set up a separate bank in the UK.
Overseas, Asian stocks ended lower as the price of crude oil took a breather from a three-day rally. Japanese stocks fell by 1.62 per cent as the yen strengthened against the dollar.
Other indices like China, Hong Kong, Singapore, South Korea and Taiwan moved down by 0.09 per cent to 0.49 per cent.
European also edged lower key indices in France, Germany and the UK down between 0.04 per cent and 0.13 per cent.
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