Millennium Post

Sensex hits new 2-month low on weak IIP data

The BSE benchmark Sensex on Wednesday fell by nearly 102 points to hit a new two-month low, led by fall in consumer durable and metal sector stocks as weak factory output and sticky inflation dented hopes of a rate cut by RBI next week.In volatile trade, the 30-share index commenced the day on a weak note and improved during intra-day to 19,143.13 with rupee improving against the dollar. However, it failed to carry the momentum and closed 101.87 points, or 0.53 per cent, down at 19,041.13, its lowest level since 18 April.

Similarly, broad-based National Stock Exchange Nifty setled lower by 28.60 points, or 0.49 per cent, at 5,760.20.Also, MCX-SX flagship index, SX40, ended 85.75 points lower, or 0.75 per cent, at 11,281.59.

Brokers said the trading sentiment dampened after industrial output growth slowed to 2 per cent in April and retail inflation dropped marginally to 9.31 per cent in May from 9.39 per cent in April.They said a weakening trend in global markets on concerns that central banks from Tokyo to Washington increasingly reluctant to add stimulus, further influenced the market. Out of the 30 index shares of Sensex, 20 stocks were down led by Tata Power ending as the biggest loser of the day falling 3.03 per cent to settle at Rs 80.05, followed by bluechips Coal India and Tata Steel, down 2.69 per cent and 2.61 per cent to Rs 303.30 and Rs 274.15, respectively.

Software exporting companies stocks fall as the government considered measures to stabilise the rupee after it hit an all-time low of 58.38 on Tuesday. The second heaviest on the benchmark Infosys fell by 2.02 per cent to Rs 2,423.95 and TCS by 2.06 per cent to Rs 1,467.85. Banking stocks declined as higher retail inflation and weakening rupee left less chances of interest rate cut by the Reserve Bank on 17 June,  led by Axis Bank falling 3.32 per cent to Rs 1,276.60.
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