Markets down for 4th day in a trot, Sensex sheds 110 points
In volatile trade, Indian shares fell for the fourth day in a row on Monday with Sensex losing 110.39 points to end at 17,103.31 - its lowest closing since June 28 - as weak monsoon and surging food prices dashed hopes of a rate cut by Reserve Bank later this month.
The BSE benchmark index opened higher on positive Asian cues but slided 0.64 per cent to end the day at its lowest level as sentiment turned negative with IT, metal and realty stocks facing the maximum heat.
With this, the Sensex has lost over 510 points in the last four sessions.
Likewise, the NSE Nifty on Monday fell 30 points to 5,197.25. While headline inflation eased to 7.25 per cent in June but food inflation, a key metric tracked by RBI and investors, rose to 10.81 per cent.
"RBI may not ease rates going by the number released on Monday," Crisil Chief Economist D.K. Joshi said.
The mood soured further as Agriculture Minister Sharad Pawar said farmers face a challenge this year as monsoon plays 'hide and seek'. In the 30-share Sensex, 20 stocks including Tata Steel, Jindal Steel, TCS and Infosys closed with losses while ten scrips led by Bharti, Dr Reddy's and Maruti ended higher.
The market breadth continued to rule negative with 1,661 scrips losing ground against 1,160 ending higher with investor wealth dropping by Rs 30,000 crore to Rs 61.25 lakh crore.
Selling pressure was across the metal shares as worries over lower Chinese demand aggravated, brokers said. IT shares fell after Goldman Sachs reportedly slashed its IT spending forecast for 2012 to 3 per cent, they added.
"The bounceback in USD/Rupee rates also didn't auger well for equity markets which succumbed to selling pressure," said Milan Bavishi, Head Research, Inventure Growth & Securities.
The rupee gave up most of its initial gains and was last trading at 55.25 compared to 54.8 levels seen intra-day. Narrowly mixed Asian cues, where the China's Shanghai Composite Index tumbled by 1.74 per cent, amid weak European trends also weighed on the market sentiment.
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