Sensex tanks 77 points on inflation worries

Mumbai: A benchmark index for Indian equities markets fell 77 points yesterday at the release of a higher-than-expected inflation data for April. Metal, automobile and power stocks came under intense selling pressure.

Amid volatile trade, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,318.36, closed at 16,215.84 — down 0.47 per cent or 77.14 points from its previous close of 16,292.98.

The Sensex touched a high of 16,390.33 and a low of 16,124.82 in intra-day trade. The midcap index of the BSE fell 59.76 points, while smallcap index closed 80.81 points down. The wider 50-scrip S&P CNX Nifty of the National Stock Exchange closed 0.43 per cent lower at 4,907.80.

The Sensex and Nifty, which were up in the early morning trade, plunged as soon as the inflation data was released.

The monthly inflation, represented by the wholesale price index or WPI index, stood at 7.2 per cent against 6.9 per cent in March 2012.

Food articles inflation was at 10.5 per cent. The unexpected spike reduced the prospects of further interest rate cuts.

Gainers and losers

The health care index was up 0.78 per cent followed by IT index, up 0.41 per cent, and consumer durable index up 0.36 per cent. The capital goods index was up 0.34 per cent followed by FMCG, up 0.28 per cent.

The metal index fell 0.55 per cent, auto index declined 0.65 per cent, and power index closed 0.79 per cent down.