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| Edited By: |Source: PTI |Updated: Mar 17, 2018, 03:40 AM IST
Stock market extended losses for the third day today with the benchmark Sensex plunging over 180 points, led by decline in Reliance Industries and ICICI Bank, as rising inflation raised concerns of an imminent interest rate hike by the Reserve Bank.
The Bombay Stock Exchange's 30-share index dropped 182.70 points or 1.03% to settle at 17,639.26 points. During the day the index had extended its losses to 1.13% as decline in global markets further weakened domestic sentiment.
Monthly inflation figures rose marginally to 9.9% in March from 9.89% in the previous month. The figure is much above the March-end estimates of 8.5% as projected by the RBI.
Analysts said the concerns of rising inflation fuelled rate hike fears among investors who are booking profit after a continued rally for the ninth consecutive week.
Higher interest rates could temper demand for loans and could lead to reduced consumer spending that could in turn hit earnings of companies.
The 50-share Nifty Index of the National Stock Exchange declined by 0.93% to 5,273.60 points.
"Investors booked profit after recent strong gains. The rise in the monthly inflation figure is hinting at a possible rate hike by the central bank RBI which will meet on April 20, Tuesday," CNI Research CMD Kishor Ostwal said.
Reliance Industries, which carries maximum weight on the index, declined 2.72% and accounted for a third of the fall today. The scrip dragged the BSE oil&gas index, which was the biggest loser among the sectoral indices.
"RIL declined today as there were reports that the company could sell Treasury shares again," Ostwal said.
Financial sector led the decline in the market with ICICI Bank tanking 2.55% and SBI (1.84%). Shares of software companies had a breather today after a continuously fall over the last week on concerns of rising rupee.
IT bellwether Infosys touched an all-time high of Rs2,801.55, after it issued a strong sales forecast that indicated a healthy demand outlook for outsourcing services.
Other IT stocks which gained were Wipro (0.10%) and TCS (0.09%).
Analysts, however, said the gains might not sustain for long as rising rupee posts a long term challenge for the companies, whose majority of revenues come from the US.
Among the 30 components of the Sensex, 19 ended in the negative zone.
Major losers were ITC (2.23%), Larsen & Toubro (1.87%), HDFC (1.83%) and BHEL (1.15%).
Scrips which bucked the broader weak trend were Jaiprakash Associates (1.17%), HUL (0.92%), DLF (0.82%) and Sun Pharma by (0.56%).
Most of the Asian markets settled in the positive terrain today with Japan's Nikkei rising 0.61%. China's Shanghai closed 0.04% lower.
European stock markets too were trading in the positive in the mid-session.
