Rising inflation swamps markets, Sensex closes 81 points down (Third Lead)

Mumbai, Jan 14 (IANS) Diminishing hopes of an interest rate cut, coupled with caution over the third quarter results and thin volumes, depressed Indian equity markets during volatile trade on Thursday.

Consequently, a barometer index provisionally closed the day’s trade down 81 points.

The bellwether indices of the Indian equity markets receded after a key macro-economic data showed an acceleration in inflation trends.

The rise in wholesale price index (WPI) diminished hopes of a rate cut by the country’s apex bank and subdued investors’ sentiments.

Caution over the third quarter (Q3) results season, long-liquidation positions and sliding Asian markets, too, dented sentiments.

Initially, both the bellwether indices opened deep in the red, following lower closing of the US markets on Wednesday and a further plunge in oil prices.

However, both indices soon pared their initial losses as healthy Q3 results, recovering European markets and short-covering restored investors’ risk-taking appetite.

Value buying at lower levels, which was prompted by attractive prices, supported the markets’ upward movement.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed lower by 81 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade in the red — down by 19 points or 0.24 percent at 7,543.90 points.

The S&P BSE Sensex, which opened at 24,606.20 points, provisionally closed at 24,772.97 points (at 3.30 p.m.) — down 81.14 points or 0.33 percent from the previous day’s close at 24,854.11 points.

The Sensex touched a high of 25,018.46 points and a low of 24,473.22 points during the intra-day trade.

The S&P BSE market breadth favoured the bears — with 1,861 declines and 823 advances.

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