The equity market today closed in the red ahead of the key macroeconomic data of inflation and IIP this week.
The Sensex closed at 19460.57, down 0.12 percent and the Nifty closed at 5897.85, down 0.10 percent.
Reserve Bank of India (RBI) Duvvuri Subbarao’s comment today that India’s headline inflation at 7.5 percent is “still high” added to the downbeat mood in the market.
Subbarao said inflation was due to a spike in crude oil prices and the government’s high fiscal deficit.
Citigroup also lowered India’s economic growth forecast to 5.7 percent, from 6.2 percent earlier, for the next financial year and said continued action from all policy makers is needed to reverse the decline.
“Taking into account the 5 percent GDP estimate for FY13 and revisions to past data, we are revising our FY14 GDP estimate down to 5.7 percent from 6.2 percent,” Citigroup said in a research note. ITC falls 1.6 percent on profit-taking, while Oil and Natural Gas Corp fell 1.8 percent ahead of its December quarter earnings later in the day.
Financial stocks fell today on continued concerns on India’s economic growth after government estimates on Friday showed FY13 growth could be worse than expected. ICICI Bank falls 0.67 percent while HDFC is down 1.09 percent.
Stocks in news
Tata Communications closed up 1.47 percent after the company reported net loss of Rs 201 crore for the third quarter ended December 31, 2012, due to rise in expenditures. The company had posted a net loss of Rs 153.06 crore in the same period a year ago.
GMR closed down 2.11 percent after reports that the group has held exploratory talks with Airports Authority of India for a partnership to jointly develop airport projects overseas, two people with knowledge of the development said.
Cipla closed up 4 percent after the company decided to put on hold its $220 million acquisition plan of the third largest South African drugmaker Cipla Medpro due to valuation issues, Cipla chairman YK Hamied said.
SKS Micro closed up 10% after the company concluded two microfinance securitisation transactions aggregating Rs 390 crore.