By IANS,
Mumbai : A benchmark index for Indian equities markets Wednesday closed 176 points lower a day before an imminent rate hike by the country’s central bank.
Analysts are largely of the view that the Reserve Bank of India will raise interest rates by 25 basis points Thursday as inflation continues to rule high.
Latest data released Tuesday by the commerce and industry ministry showed inflation, as measured by the wholesale price index, at 9.06 percent in May — much higher than 8.66 percent in the previous month.
The RBI has hiked interest rates nine times since March 2010 and said that it would not shy away from more tightening in the coming months if inflation does not come down.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,298.59 points, closed at 18,132.24 points — down 176.42 points or 0.96 percent from its previous close at 18,308.66 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended in the red at 5,447.5 points, down 0.96 percent.
Broader markets also ended in the negative, with the BSE midcap index closing 0.55 percent down and the BSE smallcap index ending 0.59 percent lower.
Among gainers on the 30-scrip Sensex were: Reliance Infra, up 1.46 percent at Rs.563.60; Tata Motors, up 0.96 percent at Rs.993.40; Hindustan Unilever, up 0.52 percent at Rs.316.90 and Hero Honda, up 0.2 percent at Rs.1,740.10.
The losers were DLF, down 2.8 percent at Rs.225.45; Wipro, down 2.78 percent at Rs.424.25; SBI, down 2.33 percent at Rs.2,182; and ICICI Bank, down 2.1 percent at Rs.1,033.05.
According to data available with the Securities and Exchange Board of India, foreign institutional investors sold scrips worth $83.38 million Wednesday.
Asian markets ended mixed.
The Nikkei of the Japanese stock exchange closed 0.28 percent up at 9,574.32 points, while the Hang Seng of the Hong Kong stock exchange was trading 0.68 percent lower at 22,343.77 points.
The Chinese Shanghai composite index moved down 0.9 percent to close at 2,705.43 points.
European markets were depressed.
Britain’s FTSE was ruling 0.16 percent lower at 5,793.79 points.
Around midday, the French CAC 40 was trading 0.45 percent lower at 3,847.3 points, while the German DAX was down 0.4 percent at 7,175.98 points.