Sensex slips 121 points , due to hike rate fears

Mumbai : The sensex closed 121 points lower today on fears that the RBI could hike rates further after data showed November headline inflation still above 9 percent.

The inflation at 9.11 percent was more than what policymakers and analysts expected.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened lower at 15,963.75 points, closed at 15,873.29 points, 121.37 points or 0.76 percent down from its previous close at 16,002.51 points.

The Sensex had fallen to an intra-day low of 15,855.12 points.

Concerns on the rupee which fell to a new low of 53.75 to a dollar continued to worry investors.

The currency has been under downward pressure for more than four months as foreign funds went bearish on Indian equities markets and as demand for the greenback from importers increased.

The gloomy outlook for the global economy owing mainly to the debt crisis in eurozone also added to the Indian currency’s depreciation.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended lower at 4,763.25 points, down 0.78 percent or 37.35 points from its previous close.

Broader markets ended in the red as well, with the BSE 500 index closing 0.86 percent down. The BSE midcap and smallcap indices also gave up their gains and closed 0.95 percent and 0.81 percent lower.

The market breadth was negative, with 1,080 stocks advancing and 1,626 on the decline. Another 160 were unchanged.

Among gainers on the 30 scrip Sensex were: Sun Pharma, up 1.68 percent at Rs.519.90; ITC, up 1.17 percent at Rs.199.65; Bharti Airtel, up 0.71 percent at Rs.348.85; and Jaiprakash Associates, up 0.25 percent at Rs.60.65.

Prominent losers included: Tata Power, down 3.98 percent at Rs.86.90; DLF, down 3.94 percent at Rs.376.50; DLF, down 3.58 percent at Rs.200.85; and Coal India, down 2.76 percent at Rs.299.90.

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