 "Sensex ends in red for 6th straight day on rate hike fears")
The benchmark Sensex today erasedinitial gains and ended over 47 points down, logging lossesfor the sixth day in a row, as investors grew nervous ahead of
RBI’s policy review meet where it is expected to hike rates.
Mixed global cues before the US Federal Reserve startsits two-day meeting, also affected domestic sentiments.After a better start at 20,732.44, the Sensex inched up to 20,784.03 on value-buying and positive cues from Asia.However, it struggled at the day’s peak and wiped off allgains to enter the negative terrain in the second half.The 30-share Sensex closed down 47.38 points, or 0.23 percent, at 20,612.14 as 14 stocks declined while 16 rose.
Rate-sensitive banking, realty and auto shares were worsthit while defensive bets like healthcare and FMCG scrips sawbuying. HDFC Bank, HDFC, NTPC and Coal India saw sharp losseswhile Bharti, Sun Pharma, Cipla and ITC rose.
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The Sensex has now lost over 714 points in six sessions.The 50-share NSE index Nifty fell by 15.65 points, or0.25 percent, to 6,139.05, after touching the day’s high of6,190.55. SX40 index of MCX-SX fell 20.64 points to 12,264.64.
“Higher than expected inflation has fuelled expectationsthat RBI may hike rates in its meeting tomorrow. Similarly,outcome of Fed’s meeting will have impact on Indian equitymarkets on Thursday,” said Milan Bavishi, Head Research,Inventure Growth and Securities.Expectations of a 0.50 percent hike by RBI tomorrow havealso built up after wholesale price index based inflation datacame out higher-than-expected and price rise in retail levelsoared to over 11 per cent, said analysts.
The initial gains today were also lost on weakopening in European stock markets, they added.The BSE Banking sector index suffered the most by losing
1.28 percent, followed by PSU thematic index (0.83 per cent),Power index (0.73 per cent) and Realty index (0.66 per cent).Oil & gas index was also a loser dragged down by RIL.Bucking the weak trend, the stocks of consumer durable,healthcare, FMCG, Teck, IT and capital goods sector gained andsaved the market from any major fall, said dealers.
PTI