Nifty sheds 29 points on macro worries; rate cut hope fades

Dismal industrial output data and stubbornly high retail inflation jolted the market and once again put the spotlight on India's growth momentum as the benchmark CNX Nifty lost another 29 points on the National Stock Exchange (NSE) today.
Despite a smart recovery in the rupee value against the dollar, sentiment remained edgy after the latest macroeconomic data indicated no revival of economic growth.
Industrial production growth slipped to 2 per cent in April and retail inflation stood at a high of 9.31 per cent in May, reducing hopes that RBI will cut key interest rates at its policy review meeting on June 17.

After a sluggish start, the key index remained under intense selling pressure. The market pulled back smartly to trade in positive terrain for a brief period in mid afternoon but the turnaround did not last long and the 50-share index ended in the red for the third straight day.
FMCG, technology metal and auto stocks suffered the most, while healthcare, energy and infra shares attracted good buying interest.
Other Asian markets remained under intense selling pressure after a global sell-off on Tuesday triggered by the Bank of Japan's monetary policy decision. Hong Kong and China bourses were shut today for public holiday.

The Nifty fluctuated between a high of 5,792.90 and a low of 5,738.60 before ending at 5,760.20, a fall of 28.60 points, or 0.49 per cent over its previous close.

Reliance Infra, Axis Bank, Coal India, Tata Power, Tata Steel, HeroMoto, Bajaj Auto, Hindalco, TCS and Sesa Goa were among key losers from the index pack.
The key gainers included Jindal Steel, IndusInd Bank, JP Associates, IDFC, Lupin, DLF, PNB, M&M, HCL-Tech and Cipla.
Turnover in the cash segment improved to Rs 11,630.03 crore from Rs 11,436.42 crore yesterday. A total of 6,015.70 lakh shares changed hands in 59,53,207 trades. Market capitalisation stood at Rs 62,74,056 crore.