Global cues, rate hike fears push Sensex down by 143 pts

Mumbai, July 7 (PTI) Stock market benchmark Sensex
Wednesday dropped by 143 points on selling in energy and
financial stocks, amid weak global cues and worries of another
rate hike by the Reserve Bank of India.
The Bombay Stock Exchange's 30-share barometer opened on
a weak note and, in the absence of any positive trigger, it
traded in the negative zone for the entire day.
The Sensex, which had gained 173 points in the last
trade, closed today's trade at 17,471.03, down by 143.45
points, or 0.81 per cent.
The National Stock Exchange's wide-based Nifty-50 index
lost 0.91 points to settle at 5,241.10.
Local markets slipped as equities worldwide declined
after a weaker-than-expected service sector report in the US
reinforced the growing view that the global recovery was in
danger of losing momentum, analysts said.
"The market is moving in a narrow range, and is
struggling for a clear direction. It was a consolidation
session. The trend is likely to continue ahead of first
quarter performances," Anand Rathi Securities Head Of Research
D D Sharma said.
Widespread selling was visible on Dalal Street, with oil
& gas, metal and banking stocks figuring among the worst hit.
Reliance Industries Ltd, which carries the maximum weight
in the Sensex, plunged 1.83 per cent to Rs 1,052.95. State-run
energy major ONGC lost 1.87 per cent.
"The domestic mood was cautious as investors awaited key
results and economic data, due next week," said a broker.
Banking stocks retreated after two days of gain on fears
of a second rate hike within a span of one month by the
Reserve Bank.
While ICICI Bank declined 1.47 per cent, HDFC fell by
1.29 per cent, HDFC Bank by 1.15 per cent and SBI by 0.39 per
cent.
"Investors dumped financial stocks on concerns of a
further rate hike by the RBI," Sharma added.
In the Sensex pack, 26 components ended with loss, while
four managed to close in the green.
Reversing yesterday's gain, metal stocks beat a retreat
today. Sterlite Industries lost 2.12 per cent, Hindalco 1.2
per cent, Tata Steel 1.04 per cent and Jindal Steel 0.77 per
cent.
Except for consumer durables and technology, all sectoral
indices on the BSE ended in the red.
With a drop of 2.22 per cent, Tata Motors was the biggest
loser in the BSE-30.
However, telecom stocks bucked the trend and settled in
the green, helping the Sensex cap some of the losses.
The country's top telecom operator, Bharti Airtel, gained
about 2 per cent after the company said it will invest USD 600
million in Nigeria's mobile market following its USD
10.7-billion takeover of Zain Telecom's African business.
Anil Ambani-led Reliance Communications, another telecom
major, rose by 1.59 per cent.
TCS closed 0.77 per cent up.
Meanwhile, benchmark indices were weak across the world.
Except for China's Shanghai index, which moved up 0.49 per
cent, all the key Asian bourses ended in the red.
Europe was also quoting lower in the mid-session. PTI