Mumbai, Market benchmark Sensex declined 88
points to close at 28,064.61 on Tuesday as investors cut down
their bets after industrial output growth slowed down to 2.1
per cent in June and inflation hits two-year high.Lower international advices following a sharp rally in the yen and disappointing Japanese second-quarter GDP figures also hit investor sentiment.
An official data on Friday showed industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods.
Besides, retail inflation shot up to nearly two-year high of 6.07 per cent in July, well above RBI's comfortable level, on surge in prices of food items as demand for sugar, oil & fats and spices rose ahead of the festival season.
WPI inflation today hit a 23-month high of 3.55 per cent in July.
"Markets have begun to refocus on macros, and the first of those have disappointed. Both the CPI and WPI have diminished chances of a rate cut in October," said Anand James Chief Market Strategist, Geojit BNP Paribas Financial Services.
The BSE Sensex resumed higher at 28,190.04 and hovered in a range of 28,199.10 to 27,942.65 before closing at 28,064.61, showing a fall of 87.79 points or 0.31 per cent. The gauge had gained 377.52 in the previous two sessions.
The 50-issue Nifty fell 29.60 points or 0.34 per cent to close at 8,642.55. Intra-day, it hovered between 8,682.35 and 8,600.45.
Post a Comment