Active Stocks
Tue Mar 19 2024 15:58:41
  1. Tata Consultancy Services share price
  2. 3,977.55 -4.03%
  1. Tata Steel share price
  2. 148.65 -0.64%
  1. Bharti Airtel share price
  2. 1,227.85 0.23%
  1. Power Grid Corporation Of India share price
  2. 258.95 -2.28%
  1. ITC share price
  2. 409.50 -1.89%
Business News/ Market / Stock-market-news/  Sensex falls over 100 points; rate sensitive shares slump
BackBack

Sensex falls over 100 points; rate sensitive shares slump

The Sensex closed 0.64% lower at 22,484.93, while the Nifty ended down 0.64% at 6,733.10

Shares of HDFC, Hindalco Industries and Axis Bank fall. Photo: MintPremium
Shares of HDFC, Hindalco Industries and Axis Bank fall. Photo: Mint

Mumbai: The BSE Sensex and the Nifty fell for a second consecutive session on Tuesday, with the Nifty marking its biggest fall since 3 March, as interest-rate sensitive shares such as Housing Development Finance Corp. Ltd. (HDFC) fell after wholesale inflation accelerated more than expected.

The wholesale price index (WPI) in March rose a much faster-than-expected 5.70% from a year earlier, marking a three-month high and coming well above the 5.30% increase forecast by economists.

Inflation concerns were reinforced after consumer price inflation (CPI) data in March quickened to 8.31%, driven by higher food prices, government data showed on Tuesday.

Worries that a rally that sent indexes to record highs last week may have been overdone also weighed, especially as Asian shares were hit by data showing China’s money supply growing at the weakest pace in more than a decade.

Foreign institutional investors (FIIs), who have pumped in $4.8 billion so far in 2014, became net sellers worth Rs363 crore ($60.3 million) on Friday for the first time since 10 March. Markets were closed on Monday for a holiday.

“With the Nifty seeing a one-sided rally for the last several weeks, investors may continue to book partial profits too. In the coming sessions, fourth quarter results, election outcome and global cues will have a major impact on the market trend," said by Rakesh Goyal, senior vice-president, Bonanza Portfolio Ltd.

“However, despite selling pressure, Nifty is seen holding above the 6700 level well, which shows optimism in the near term. The index can be seen trading in a compact range of 6650-6820 for the last few trading sessions," he added.

The benchmark Sensex closed 0.64% lower at 22,484.93, while the broader Nifty also ended down 0.64% at 6,733.10.

Interest rate-sensitive shares such as those of banks and real estate companies fell after the surprisingly strong wholesale price inflation.

These sectors had surged on anticipation the Reserve Bank of India (RBI) would hold off on further interest rate hikes after tightening monetary policy by 75 basis points since September.

HDFC fell 3.39%, while DLF Ltd. lost 5.8% and Unitech Ltd. closed 2.1% lower.

Among banks, State Bank of India (SBI) ended down 1.5%.

Investors took profit across a range of blue chips. Hindalco Industries Ltd. fell 4.73%, while Tata Motors Ltd., which had gained 6.3% so far this month, was down 2.4%.

However, Infosys Ltd. rose 0.76% after posting a stronger-than-expected 25% increase in net profit.

Other IT outsourcing companies also rose, with Tata Consultancy Services Ltd. (TCS) gaining 4.1% and Wipro Ltd. closing 3.6% higher.

Shares in United Spirits Ltd. rose as much as 15% to a record high of Rs2,940.80 after Diageo Plc announced a tender offer to acquire up to an additional 26% stake in the Indian firm at Rs3,030 a share. The offer will be launched in June.

Shares in the spirits maker ended up 11.6%. Reuters

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 15 Apr 2014, 09:55 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App