Sensex closes 144 points down on inflation concerns

A benchmark index of the Indian equities market Tuesday lost 144 points or 0.64 percent on profit booking in blue chips stocks after disappointing inflation data came out.

The 30-scrip S&P Sensex (sensitive index) of the Bombay Stock Exchange (BSE), which opened higher at 22,698.09 points, closed at 22,484.93 points, down 144.03 points or 0.64 percent from its previous close of 22,628.96 points.

The Sensex hit an intra-day high of 22,737.31 points and a low of 22,416.24 points.

The markets were bearish after the Wholesale Price Index (WPI) inflation data was announced. According to figures released by the ministry of commerce and industry, 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 hopes of monetary policy easing by the Reserve Bank of India.Selling pressure was observed in interest rate sensitive banking, metal, automobile, consumer durables and healthcare stocks.

However, information technology (IT), technology, entertainment and media (TECK) and fast moving consumer goods (FMCG) stocks grew.The banking index of the BSE was down 303.44 points, metal index was lower by 290.66 points, automobile index fell 125.55 points, consumer durables index slipped 88.41 points, and healthcare index lost 48.93 points. 

However, IT index was up 190.55 points, followed by TECK index which grew by 79.69 points and FMCG index which gained 18.28 points.The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) also fell 0.64 percent or 43.20 points to 6,733.10 points.

The major Sensex gainers were: Tata Consultancy Services (TCS), up 4.06 percent at Rs.2,251.55; Wipro, up 3.71 percent at Rs.589; Hero MotoCorp, up 2.34 percent at Rs.2,222.40; Infosys, up 0.76 percent at Rs.3,260.45; and NTPC, up 0.72 percent at Rs.125.45.

Sensex main losers were: Hindalco Inds, down 4.48 percent at Rs.134.20; Axis Bank, down 3.32 percent at Rs.1,445.75, HDFC, down 3.25 points at Rs.887.80; Sesa Sterlite, down 3.14 points at Rs.189.75; and Tata Steel, down 2.79 percent at Rs.408.40.

Among the Asian markets, Japan's Nikkei closed 0.62 percent up, and Hong Kong's Hang Seng ended 1.60 percent down. China's Shanghai Composite Index fell 1.40 points. In Europe, london's FTSE 100 was trading 0.02 percent up at the closing bell here. Germany's DAX Index decreased by 0.23 percent, while the French CAC 40 Index gained by 0.24 percent.