The Sensex at the Bombay Stock Exchange fell by 263 points or 1.5 per cent on Monday following a rise in inflation in China,below expected employment data from US and a weak deposit growth for the financial year 2012-12 in India. The Sensex closed at 17,222 on Monday.
The broader Nifty at the National Stock Exchange fell by 1.7 per cent to close the day at 5,234.
The fall during the day was driven by stocks in the metal,capital goods and the power sector. While metal index was down by 3.4 per cent,capital goods and power indices were down 3.2 and 2.5 per cent respectively.
Among the Sensex companies Hindlaco and Sterlite were the biggest losers as the two stocks fell by 5.2 and 4.3 per cent respectively.
Asian market was trading down as Chinese inflation rose above expectation. It hinted that the government may not rush towards any stimuli which caused selling pressure in metal stocks as China is the largest consumer of metals especially base metals, said Alex Mathews,head of research at Geojit BNP Paribas Financial Services.
While the market is expecting an interest rate cut at the RBI policy meet on April 17,a low deposit growth and thus increasing credit deposit ratio has raised concerns over the same following which the banking stocks too fell during the day.
While Canara Bank fell 3.2 per cent,SBI slipped by 2.9 per cent. ICICI Bank too lost 2.3 per cent during the day. BHEL and L&T fell by 3.7 and 3.5 per cent respectively.
HMT shares surge 15%
Shares of HMT today soared by nearly 15 per cent on the bourses after the Board for Reconstruction of Public Sector Enterprises recommended a Rs 950 crore revival package for the company. After opening on a robust note,the stock gained further and shot up 14.7 per cent to reach the days high of Rs 47.95 on the Bombay Stock Exchange. At the National Stock Exchange,it was up 14.8 per cent at Rs 48.05.