By IANS,
Mumbai : A benchmark index for Indian equities markets Monday kicked off the week’s trade with a negative bias as investors reacted to news of the petrol rate hike by oil marketing companies over the weekend, stroking fears that inflation could rise further.
A surge in inflation could result in a harsher hike of key interest rates by the Reserve Bank of India, which has already said it will continue to combat high inflation by maintaining a hawkish monetary policy.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,492.68 points, was ruling at 18,423.64 points — down 107.64 points or 0.58 percent from its previous close at 18,531.28 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading higher at 5,521.65 points, down 0.42 percent.
Broader markets were ruling weak too, with the BSE midcap index ruling 0.19 percent down and the BSE smallcap index 0.13 percent down.
Oil marketing companies had increased petrol prices by Rs.5 per litre.
Interest rate sensitive stocks like auto, banking and realty stocks were among top losers at this time.
The market breadth was tilted towards the negative with 1,030 stocks advancing, 1,202 on the decline and 92 unchanged.
Among gainers on the Sensex were Hero Honda, Bharti Airtel, BHEL and Hindustan Unilever, while losers included M&M, Reliance Infra, Jaiprakash Associates and ONGC.
Concerns of the Greece sovereign debt crisis worsening spooked traders at Asian markets.
The Nikkei of the Japanese stock exchange was ruling 0.83 percent lower at 9,568.58 points, while the Hong Kong’s Hang Seng was trading 1.19 percent down at 23,000.44 points.
The Shanghai Composite index of the Chinese markets was trading 0.28 percent down at 2,863.02 points.