Markets have slipped further in the noon deals. Analysts say markets are eyeing the Reserve Bank of India’s stand on interest rate going forward. Higher inflation - up at 9.06% in in May versus 8.66% in April - is expected to haunt growth drivers. Economist expect RBI to hike rates by 25 basis points on Thursday.
The Sensex was at 18,200, lower by 108 points and the Nifty had shed 32 points at 5468.
According to Shashank Mehta, derrivative analyst with Nirmal Bang, "Any hike in rates above expectation will lead to accross the board sell off in rate sensitive sectors"
State Bank of India emerged as the top loser among the Sensex stocks, down nearly 2% to Rs 2191. Wipro was also trading lower by 1.76% at Rs 428. Sterlite Industries, Hindalco, Reliance Comunication, DLF, J P Associates, Jindal Steel, ICICI Bank and BHEL were also trading lower by 1-1.5% each. On the other hand Reliance Infrastructure, HDFC, Tata Steel, TCS, Hindusthan Unilever, Tata Motors and Hero Honda were the notable gainers.
On the sectoral front the BSE Realty index weakend further, the index shed 1.34% to 2123. it was followed by Consumer Durable, Bankex, IT and PSU indices. Meanwhile Healthcare and FMCG indices continued to trade in the positive territory.
DB Realty was the top loser among the realty stocks, down 2.2% to Rs 73. Peninsula Land, Unitech, Indiabulls Real Esate, DLF, HDIL and Sobha Developers were also trading in the red.
Among the consumer durable stocks Titan Industries was the top loser. It was followed by Whirlpool, Rajesh Exports, VIP Industries and Bajaj Electricals.
The broader markets also slipped marginally into the red, the BSE Mid-cap index was down 12 points at 6946 and the Samll-cap index was at 8338, lower by 6 points.
The overall breadth has turned negative as 1403 stocks declined while 1189 stocks advanced.
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