New Delhi: Markets continue to trade lower on Thursday afternoon despite the dip in inflation number announced by the government, but volatility was expected in trading ahead of the settlement of February Futures & Options series today.
Inflation figures have come down to their 14-month low at 3.36% for the week ended 14 February, lower to 3.92% in the previous week and a sharp dip from 12% in mid 2008.
After Tuesday’s surge in Wall Street DowJones dipped on Wednesday on worries of increased government role in the economy. Coinciding with overnight Wall Street fall, Asian markets also extended losses, which made domestic investors also cautious of fresh positions.
Realty, banks and metal stocks are under pressure but there is some buying activity among capital goods, IT and auto segments.
The Bombay Stock Exchange benchmark Sensex opened flat with a negative bias and continued to tumble in economic uncertainty. At 12:34pm, 30-share BSE Sensex was at 8,825.11 down by 77.44 points and the NSE Nifty was at 2,738.30 down by 24.20 points.
Ranbaxy Laboratories are the biggest loser on the index as their stocks plunged over 15% after the US health regulator FDA on Wednesday said Ranbaxy has falsified data and test results in its drug application.
Others who suffered loss are ICICI Bank, Housing Development and Finance Corp, DLF Ltd, Hindalco Industries and Jaiprakash Associates.
Meanwhile, Larsen and Toubro is on top among gainers in the BSE pack, it is higher by 1.89% at Rs624 along with Tata Motors, Grasim Industries, Reliance Communications, ACC Ltd and Infosys Technologies.
In the global markets, Japan’s Nikkei stocks ended flat and Hang Seng has dropped 0.8% on financial worries.