Snapping the nine-day winning trend,the Sensex today closed 46 points lower to sub 18,500-level,with investors adopting caution after recent gains amid retail inflation data touching double-digits.
After opening weaker,the BSE benchmark index witnessed choppy trade for most of the session trading in a narrow 111-point range. It touched day’s high of 18,580.48 but failed to sustain gains with TCS,RIL and ICICI Bank falling in 1-3 per cent range.
There was,however,good buying support in Bhel,SBI and Gail that rose in 3-5.5 per cent range with PSU shares among the best performers today.
Jindal Steel,Infosys and Bharti Airtel saw some demand.
Brokers said sentiment soured on reports that soaring vegetable prices pushed up the retail inflation to 10.03 per cent in August,up from 9.86 per cent in the previous month.
The 30-share index finally closed at 18,496.01,down 46.30 points or 0.25 per cent. In the previous nine days,Sensex rose over 1,200 points to levels last seen in July,2011.
The 50-share NSE index Nifty also fell by 9.95 points,or 0.18 per cent,to 5,600.05, after touching high of 5,620.55.
“Retail inflation hasn’t come down. While rain deficit has now come down to 6 per cent,inflation is still a major worry…Market was also down as some profit booking was seen in RIL,” said Kishor P Ostwal,CMD,CNI Research Ltd. RIL fell 2.11 per cent to Rs 855.20 after the price yesterday rose above ongoing maximum buyback price of Rs 870.
Traders also said activity remain subdued ahead of market holiday on account of Ganesh Chaturthi tomorrow.
Across BSE indices,Oil&Gas fell 1.13 per cent, followed by IT (0.54 pc),Healthcare (0.22 pc),Metal (0.19 pc). The PSU index,however,gained 1.54 per cent today.
Globally,France’s CAC,Germany’s DAX and the UK’s FTSE were down by up to 1 per cent in afternoon deals. Most Asian markets also ended lower.
Meanwhile,the rupee pared early losses and regained 53- levels on dollar selling by corporates.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 2,252.17 crore yesterday as per the provisional data from the stock exchanges,taking their total investments to Rs 8,032.50 crore in past nine days.
Speaking on Nifty’s future outlook,Shubham Agarwal,Associate VP & Senior Technical Equities Analyst,Motilal Oswal Securities said: “Nifty saw another day of consolidation around the mark of 5600. Risk-reward for the longs have been diminishing with exhaustion possible in the band of 5680-5700 and downside open for 5450.”
In Asia today,barring South Korea,others fell between 0.27 per cent and 0.91 per cent on rising concerns that Europe’s debt crisis remains unresolved.
Back home,16 out of 30 Sensex-based counters ended down while 13 closed with gains. L&T finished unchanged.
Major losers were Wipro (3.79 pc),TCS (3.02 pc),Hindalco (2.13 pc),RIL (2.11 pc),NTPC (1.51 pc),Tata Motors (1.30 pc),Tata Steel (1.24 pc) and ICICI Bank (1.10 pc).
Among gainers,BHEL firmed up by 5.44 per cent,followed by SBI (3.59 pc),GAIL India (3.01 pc),Jindal Steel (2.64 pc),Infosys (1.45 pc) and Bharti Airtel (1.27 pc).
In sectoral indices,BSE-PSU rose by 1.58 per cent,followed by BSE-CG (0.90 pc) and BSE-Power (0.88 pc),while BSE-Oil&Gas declined by 1.13 per cent and BSE- IT fell by 0.54 per cent.
The total turnover dropped to Rs 2,582.28 crore from Rs 3,171.92 crore yesterday.
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