Sensex closes at lowest in over a month

The 30-share index ends 88 points down at 20,194

The BSE Sensex fell for a seventh consecutive session on Wednesday to its lowest close in over a month as rate-sensitive stocks declined after higher-than-expected retail inflation data raised fears of a third rate hike this year.

India's annual consumer price inflation quickened more than expected to 10.09 per cent in October from 9.84 per cent in September, driven by food prices, government data showed on Tuesday.

Uncertainty about the timing of a cut in Federal Reserve stimulus and the fine print of economic reforms in China also hurt sentiment. However, the market may find some support at lower levels due to an oversold state and a recovery in the benchmark bond after RBI Governor Raghuram Rajan said the central bank will buy Rs 8,000 crore of bonds through open market operations.

The benchmark Sensex fell 0.43 per cent, or 87.51 points, to end at 20,194.40, at its lowest close since October 8 in a holiday-truncated week.

 

The Nifty fell 0.47 per cent, or 28.45 points, to end at 5,989.60, to mark its longest losing streak since falling for eight consecutive days from July 24 to August 2, tracking a slump in the rupee. Trading in Indian shares and equity derivatives will remain open on Thursday and it will be closed on Friday, according to a spokeswoman of National Stock Exchange and a BSE statement posted on its web site.

Among rate-sensitive stocks HDFC Bank fell 1.9 per cent, while Hero MotoCorp Ltd ended 1.7 per cent lower.

 

Among real estate developers, DLF fell 1.3 per cent, while Unitech ended 1.8 per cent lower. Tata Global Beverages fell 6.6 per cent after its quarterly operating profit lagged some analysts' estimates. The company reported its earnings after market hours on Tuesday.

 

Cipla fell two per cent ahead of its July-Sept earnings later in the day. Sesa Sterlite Ltd fell 2.3 per cent adding to Tuesday's 3.4 per cent fall after the Supreme Court upheld on Monday a mining ban at top iron ore producing state of Goa. However among stocks that gained, Sun Pharma rose 1.7 per cent after its unit, Taro Pharmaceutical Industries Ltd's operating profit beat some analysts' estimates, boosting outlook for the company's results later in the day.

Bata India shares gained 1.5 percent after its parent Bata B N B V bought 608,657 shares of the company at Rs 888.05 per share via a bulk deal on Tuesday, as per the BSE data.