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Rate hike fears rattle market; Nifty tanks 1%, banks crack

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Press Trust of India Mumbai
Last Updated : Sep 27 2013 | 8:31 PM IST
Shares succumbed to a late sell-off as underlining investor worries on interest rate hike and profit booking pulled down the benchmark CNX Nifty by 49 points on the National Stock Exchange (NSE) today.
The sell-off was led by banking and other rate sensitive counters on concerns that the central bank might increase rates in near future if inflation continues to rule at high levels. Capital goods, metal and energy related stocks, too, witnessed intense selling.
Trading began on a positive note on the back of firm buying in select heavyweights and buoyant global sentiments. The market soon turned choppy and remained under pressure in the absence of any major trigger.
The selling intensified in late-afternoon after a brief pullback, mirroring weak opening in European peers. Some low- level buying in FMCG, technology and healthcare stocks prevented the market from falling further.
Trading sentiment was also hit after UK bank Barclays lowered India's FY14 GDP forecast for the current fiscal to 4.7 per cent on concerns over worsening fiscal health.
Meanwhile, barring Japan most Asian market finished higher following a recovery at Wall Street.

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The 50-share index hovered between a high of 5,909.20 and a low of 5,819.30 before ending at 5,833.20, registering a sharp fall of 49.05 points, or 0.83 per cent.
Power equipment maker BHEL topped the losers' list, slipping heavily on account of profit booking. JP Associates, Tata Steel, DLF, Kotak Bank, Bharti Airtel, SBIN, Hindalco, Sesa Goa and ICICI Bank were the other major laggards.
The gainers among the Nifty stocks included BPCL, HCL Tech, Sun Pharma, Coal India, HeroMoto, UltraTech PNB, ACC, Ambuja Cement and TCS.
Turnover in the cash segment to dropped to Rs 9,541.29 crore from 12,394.57 crore yesterday. A total of 5,474.24 lakh shares changed hands in 50,96,645 trades. The market capitalisation stood at Rs 62,71,636 crore.

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First Published: Sep 27 2013 | 8:31 PM IST

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