The BSE Sensex fell for the seventh straight session, slipping by 88 points, hit by fears of interest rate hikes by the
Reserve Bank of India (RBI) to control rising inflation.
After markets closed on Tuesday, industrial output showed subdued growth while
retail inflation continued to persist at discomforting double-digit levels, raising the possibility of the central bank hiking repo rate next month, market analysts said.
A weak show by Asian stocks and lower opening in Europe, after reports said Fed officials gave mixed signals on Tuesday amid speculation that the US central bank would start reducing stimulus next month, further influenced the domestic trend.
The
30-share index of the Bombay Stock Exchange fell by 87.51 points, or 0.43 per cent, to 20,194.40 - its lowest level since October 8. In a volatile trade, the gauge touched the day's high of 20,365.59 and a low of 20,161.64.
The 50 share National Stock Exchange Nifty ended below the crucial 6,000-level by losing 28.45 points, or 0.47 per cent at 5,989.60.
SX40 index of MCX-SX fell 84.36 points to end at 12,002.12.
The Sensex has now lost 1,044.96 points in seven sessions, its longest losing streak since the eight days ended August 2 when it cracked by 1,138.11 points.
The fall in Indian shares came despite strength in rupee that was trading about 21 paise up at 63.5 levels versus dollar. It had till Tuesday dropped for five straight days.
Amongst Sensex gainers on Wednesday, SBI jumped 1.34 per cent after its 33 per cent drop in quarterly profit came in line with expectations. Tata Motors, Sun Pharma, HUL, Hindalco, M&M and BHEL also witnessed good buying, said brokers.
Laggards included ITC, HDFC Bank, TCS, RIL and L&T that pulled down Sensex. The biggest losers, in percentage terms, included GAIL, Cipla and Sesa Sterlite.
Interest-rate linked sectors were among major losers. The Realty sector index suffered the most by losing 1.14 per cent, followed by FMCG 0.98 per cent and Banking 0.62 per cent. IT stocks were also hurt after the rupee rose.
With inputs from PTI
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