Don’t miss the latest developments in business and finance.

Sensex ends flat as inflation concerns wipe out early gains

Image
Press Trust Of India Mumbai
Last Updated : Sep 16 2013 | 11:38 PM IST
The benchmark S&P BSE Sensex on Monday erased a strong early start to close just 10 points up after inflation soared to a six-month high, leaving investors concerned the RBI has little room to cut interest rates.

Four of the 13 BSE sectoral indexes gained, led by bank shares, while healthcare, realty and information technology (IT) stocks fell. ICICI Bank, HDFC Bank and ITC helped the Sensex gain even as TCS, Reliance Industries and Infosys dragged it lower.

The 30-share Sensex opened at 19,977.38, about 245 points higher than the previous close of 19,732.76 and firmed up further to 20,086.43 points. The gains came after Sebi eased investment norms for overseas entities in government debt.

More From This Section

The slide started after inflation data was released, with the index dropping to a low of 19,596.15 before ending at 19,742.47, a gain of 9.71 points or 0.05 per cent. (BIG MOVERS)

The CNX Nifty on the National Stock Exchange fell 10.05 points, or 0.17 per cent, to 5,840.55. The SX40 index on the MCX Stock Exchange finished 9.27 points higher at 11,715.45.

Inflation, as measured by the wholesale price index, came in at 6.1 per cent in August compared with 5.79 per cent in July, the highest level since February. The pace of price gains a year earlier was 8.01 per cent, the government said.

"Investors are anticipating this could lead to a rise in interest rates in the near term," said Nidhi Saraswat, senior research analyst at Bonanza Portfolio Ltd.

"Rate-sensitive sectors like realty were down. IT was also down as the rupee rallied to 62.72 against the dollar."

Ranbaxy Laboratories was the worst performer on the BSE on Monday. It fell 30 per cent to Rs 318.85 after the US Food and Drug Administration issued an import alert on drugs produced at its Mohali plant for violation of good manufacturing norms.

Also Read

First Published: Sep 16 2013 | 10:40 PM IST

Next Story