Markets down on food inflation worries; Sensex loses 33 points

LD-STOCKS

Mumbai, Dec 23 (PTI) Falling for the second day in a row,
the BSE benchmark Sensex on Thursday closed 33 points down in
sluggish trade mainly due to worries over food inflation
rising to double digits again.
After failing to hold on to the modest gains posted in
early trade, the Bombay Stock Exchange benchmark index Sensex
settled at 19,982.88, down by 32.92 points. In limited trade,
the key index hovered in a range of 136 points.
Brokers said foreign investors were reluctant to make
large scale transactions due to macro economic worries caused
by a rise in global crude oil which touched USD 90 a barrel.
They attributed the sluggishness to rising food inflation
which was at a six-week high of 12.13 per cent for the week
ending December 11. They said markets are on holiday mood,
too.
The National Stock Exchange's Nifty settled with a
marginal dip of 0.07 per cent or 4.40 points at 5,980.
"Hot money is not coming in the market, lack of investors
confidence and rising food inflation on the back of sky-high
onion prices are the main culprit for today's sluggishness,"
Religare Securities Executive VP Rajesh Jain said.
Global cues were mixed with indices in the US rising to
two-year highs on Wednesday after a government report showed
America's economy grew of 2.6 per cent between July and
September.
Most Asian stocks markets declined, while European
bourses showed a narrowly mixed trend with CAC being down by
0.26 per cent while DAX and FTSE were up by 0.06 per cent and
0.10 per cent respectively.
On home front, a meltdown the metal counter triggered the
weakness in the market. Tata Steel slipped by 1.61 per cent,
amid reports that the company may bid for Africa-focused
Riversdale Mining. Aluminium maker Hindalco lost1.81 per cent.
However, copper producer Sterlite Industries bucked the
trend with a gain of 0.95 per cent.
Six straight sessions of losses in engineering and
construction heavyweight Larsen & Toubro (L&T) weighed
heavily on the broader gauge. The scrip went down by 1.09 per
cent to settle at Rs 1,935.40.
"We will have the F&O expiry next week, there is a chance
that one may get to see some action in the market. No major
events are lined up over the next few days before the Q3
results start trickling in. So, don't expect the market to do
much in the interim period unless there is a major development
- either in India or abroad," IIFL Head of Research Amar
Ambani said.
Among the gainers, power major NTPC rose 1.50 per cent.
IT giant Infosys Technologies too went up by 0.77 per cent.
Consumer durables and metal indices were the biggest
turn-off for the broader market. Consumer Durables index lost
1.11 per cent, led by Videocon which lost 1.45 per cent.
Metal index fell by 0.97 per cent.
The market breadth turned negative as 1,479 shares ended
with losses and 1,331 shares finished with gains at BSE.
PTI MAR
RCJ


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