Sensex sheds 121 points

The BSE Sensex fell 121 points to 15,881.1 on across-the-board selling on Wednesday, amid investor concerns over high inflation, the rupee hitting a new low and weak cues from global markets. Selling pressure was widespread and barring FMCG, all the sectoral indices, led by realty, metal, power and auto, fell up to 2.4 per cent.

Showing high volatility, the BSE 30-scrip index, Sensex, which had jumped to an intra-day high of 16,133.41, slipped into the red after data for inflation was released. It closed at 15,881.1, down 121.4 points, or 0.8 per cent. The National Stock Exchange’s 50-share index, Nifty, declined 37.4 points, or 0.8 per cent, to end at 4,763.3. Even as overall inflation eased to 9.1 per cent in November from 9.7 per cent in the previous month, analysts said it was still too high for comfort. This made investors cautious ahead of the Reserve Bank of India's monetary policy meet. The central bank has raised lending rates 13 times since March, 2010, to tame inflation. This, coupled with the rupee touching a new low against the US dollar, hit investor sentiment hard.

Asian and European stocks were also weak on concerns over a slowdown in global economic growth. FIIs sold shares worth Rs 560.8 crore yesterday, according to provisional data from the stock exchanges.