Sensex slumps 183 points on disappointing inflation data
India's stock markets benchmark index Sensex fell 183 points Tuesday on profit taking in blue chips on disappointing inflation data.
The 30-scrip S and P Sensex (sensitive index) of the Bombay Stock Exchange (BSE), which opened higher at 22,698.09 points, slumped to a low of 22,418.56 points in early afternoon, shortly after the Wholesale Price Index (WPI) inflation data was announced.
The Sensex was trading at 22,446.01 points at 12.43 p.m., down 182.95 points, or 0.81 percent from its previous close at 22,628.96 points.
There were selling pressures in interest rate sensitive banking, auto, realty, metal and consumer durables stocks.
According to data released by the ministry of commerce and industry Tuesday morning, the headline inflation measures in terms of the WPI rose to three-month high of 5.7 percent in March from 4.68 percent in the previous month due to sharper increase in food and fuel prices.
The higher inflation data dashes the hopes of monetary policy easing by the Reserve Bank of India, the country's central bank.
Banking index of the BSE was down 1.36 percent. Auto index slumped 1.82 percent. Realty index was down 1.2 percent and consumer durables index fell one percent.
The wider 50-scrip S and P CNX Nifty of the National Stock Exchange (NSE) also fell 0.86 percent or 58.15 points to 6,718.15 points.
(Posted on 15-04-2014)