Markets slumped to the day's low as traders rolled over their positions in the derivatives sector ahed of expiry today. The Sensex hovered around the dotted line in afternoon trades as inflation eased further for the week ended December 17. However, it has now touched a low of 15,618 - down 109 points. Nifty is down 33 points at 4,673.
Food inflation fell sharply to a six-year low of 0.42% in the week ended December 17 as prices of essential items like vegetables, onion, potato and wheat declined. Food inflation, as measured by Wholesale Price Index (WPI), stood at 1.81% in the previous week. It was recorded at 15.48% in the corresponding week of 2010.
Interest rate sensitive stocks recovered early losses. BSE metal index gained marginally to 9,351 followed by the auto index. Meanwhile, bankex was down 0.4% at 9,265. OIl & gas and realty hovered in the negative zone with 1% losses.
Reliance was the key dragger among Sensex stocks and dipped 1.5% at Rs 727. Gas output from Reliance Industries' eastern offshore KG-D6 gas field declined to a fresh low of 38.66 million cubic metres per day during the week ended 18 December.
Infosys from the IT Pack shed 0.8% to Rs 2,758. Among other losers were Tata Power, Maruti Suzuki and DLF. Larsen & Toubro, HDFC Bank and Hindustan Unilever slipped around a per cent each.
Meanwhile, Sterlite added 0.8% followed by Mahindra & Mahindra, Hindalco and SBI.
Cement shares were down ahead of the monthly sales data due next week. Ambuja Cment slumped 2.2% to Rs 159 while ACC declined 1.3% to Rs 1,151.
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