MillenniumPost
Business

Sensex down 210 points on fears of RBI interest hike, US taper

Across-the-board selling on mounting speculation that the RBI will hike interest rate and the US Federal Reserve will trim its monetary stimulus next week shaved off over 210 points of benchmark Sensex on Friday, which posted its biggest weekly loss in five.

Investor wealth fell by Rs 75,000 crore as overall 1,575 stocks slid out of the 2,610 traded on the Bombay Stock Exchange. In its fourth straight fall after hitting its lifetime peak on Monday, the Sensex closed at 20,715.58, down 210.03 points or 1 per cent. ICICI Bank, Bhel and Tata Power were the biggest losers in the 24 stocks that fell in 30-share index.

In 4 days, Sensex has lost 611 points, eroding almost all the gains logged in the recent state election-fuelled rally. For the week, the barometer shed 280.95 points, the biggest loss since week ended 8 November. Eleven out of the twelve sectoral indices closed in red.
Banking, capital goods and realty shares were among the worst hit after government data on Thursday showed retail inflation soared to a nine-month high of 11.24 per cent and factory output shrank 1.8 per cent.

‘While growth is stabilising, it remains soft. However, the main concern for the RBI will be inflation, which may well compel it to raise the policy rate again next week by 25 bps,’ said HSBC Global Research said.The 50-share NSE index Nifty fell by 68.65 points, or 1.10 per cent, to 6,168.40 as 43 constituents slipped. Also, SX40 index of MCX-SX shed 117.37 points to end at 12,315.20.
Next Story
Share it