Stock market barometer Sensex today shed over 185 points on selling pressure that was partly fuelled by fears of higher inflation, even as crude oil prices climbed in the global markets.
The 30-share Sensex, which rose during the last two trading sessions, fell by 185.43 points to 14,296.79, after dipping to 14,261.69 and rising to 14,563.10 during the day.
Similarly, the wide-based National Stock Exchange’s index, the Nifty, lost 45.40 points at 4,292.10. It moved between 4,282.65 and 4,364.25 points during the day.
After a promising start, heavyweight stocks fell as market participants indulged in unwinding their pending positions a day before the expiry of the August month contract in the derivatives section.
Funds and other investors also reduced their holding in stocks, fearing a further rise in inflation, whose data is to be released tomorrow. The WPI-based inflation was 12.63 per cent for the week ended August 9. Melting global stock markets in view of a rise in crude oil prices in the international markets, raised inflationary concerns and eroded appeal of equities.
The realty sector suffered the most by losing 175.65 points at 4,837.04 followed by the banking index by 147.09 points at 6,715.45, as any rise in the inflation rate might affect housing sale and borrowing business.
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In the realty sector, seven of the segment index constituents were down and two were in the positive zone. Indiabulls Realty fell sharply by Rs 24.60 to Rs 261.70, DLF by Rs 19.85 to Rs 478.20, Akruti City by Rs 15.75 to Rs 823.40 and Unitech by Rs 3.65 to Rs 156.35.
In the banking segment, 14 scrips fell, while two gained. ICICI Bank lost Rs 18.05 to Rs 648.85, State Bank of India Rs 40.55 to Rs 1330.90 and HDFC Bank Rs 22.05 to Rs 1233.40.
The capital goods index fell by 138.54 points to 11,754.87 as 10 of the index members fell and five rose. Major losers in the segment were Larsen and Toubro, Bhel, Lakshmi Machine Works and Bharat Bijlee.
The oil and gas index fell by 112.74 points at 9,655.60 as segment major and Sensex heavyweight Reliance Industries dropped by Rs 31.80 at Rs 2,147.85.
Other losers were ONGC, Essar Oil, Aban Offshore, Reliance Petro and Hindustan Petroleum.