By IANS,
Mumbai : Late selling pressure pulled down a benchmark index for Indian equities markets Thursday, which closed 285 points lower than its previous close, as traders continued to be uneasy over high inflation and more rate hikes by the Reserve Bank of India, which Tuesday increased key interest rates by 25 basis points.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,086.69 points, closed at 18,684.43 points, down 285.02 points or 1.5 percent from its previous close at 18,969.45 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange too shut shop in the red, ending 1.46 percent lower at 5,604.3 points.
India’s annual food inflation inched up to 15.57 percent for the week ended Jan 15, because of a sharp rise in fuel prices and with vegetables and other essential food items continuing to cost dear.
The RBI Tuesday hiked its repurchase or repo rate to 6.5 percent from 6.25 percent and reverse repo rate to 5.5 percent from 5.25 percent in a bid to tame prices that have resulted in annual food inflation soaring to double digits.
Broader markets also slipped, with the BSE midcap index ending 1.88 percent down and the BSE smallcap index 1.35 percent lower.
All 13 sectoral indices on the BSE closed in the red, with realty, healthcare and metal stocks facing bulk of the selling pressure.
The market breadth was negative, with 940 stocks advancing compared to 1,883 scrips on the decline, while 152 stocks remained unchanged.
There were only two gainers on the 30-stock Sensex: Tata Motors, up 2.48 percent at Rs.1,194.25; and TCS, up 0.62 percent at Rs.1,199.15.
Top Sensex losers included DLF, down 5.42 percent at Rs.239.95; Sterlite Industries, down 5.28 percent at Rs.169.45; M&M, down 4.87 percent at Rs.733; and Reliance Communications, down 3.88 percent at Rs.127.65.
According to data available with market regulator SEBI, foreign institutional investors bought scrips worth $94.06 million Thursday.
Other Asian stock markets moved up, tracking news that the US Federal Reserve had decided to keep key rates unchanged and taking hope from new home sales data that came out better than expected.
The Japanese Nikkei closed 0.74 percent up at 10,478.66 points, while The Chinese Shanghai Composite index ended 1.49 percent higher at 2,749.15 points.
However, the Hong Kong’s Hang Seng ended 0.27 percent down at 23,779.62 points.
European markets saw moderate gains with rising shares of mining companies providing some support. Trading was range-bound.
Around mid-day, the German DAX was ruling 0.48 percent up at 7,161.64 points, while the French CAC 40 was trading 0.23 percent higher at 4,058.3 points.
The UK’s FTSE was ruling 0.32 percent up at 5,988.39 points.