Sensex sheds 21 pts, auto stocks up fuel cut

Snapping the two-day rally, the Bombay Stock Exchange benchmark Sensex on Thursday closed down nearly 21 points but auto stocks gained on anticipation of
hike in sales after cut in prices of petrol and diesel.

The Sensex exhibited a mixed pattern during the day before closing at 9,236.28, lower by 21.19 points. As many as 16 stocks in the in the 30-share barometer closed higher while another 14 ended with losses.

On alternate bouts of trading, the bellwether index moved between 9,379.68 and 9,164.96 points. Broader National Stock Exchange index Nifty lost 25.55
points at 2823.95, after touching the day's high of 2,873.85 and a low of 2,795.35 points.

Trading sentiment was partly impacted by weak corporate earnings by a few companies and a moderate rise in inflation. However, auto stocks, led by Maruti Suzuki which on Thursday announced a 54 per cent dip in profit for the third quarter, surged on anticipation of hike in sales after cut in prices of petrol and diesel. Maruti Suzuki gained 4.67 per cent. 

The government late night yesterday announced a cut of Rs 5 per litre in petrol prices and Rs 2 a litre in diesel rates.

Another auto major Mahindra & Mahindra also closed higher by 4.23 per cent.     Meanwhile, inflation marginally rose to 5.64 per cent for  the week ended January 17 from 5.60 per cent in the previous week.

Realty, capital goods, power, consumer durables,  health-care, PSU, oil and gas, teck and FMCG sectoral indices were down by up to two per cent.

On other hand, auto, IT, metal and bank sector stocks supported the market from any major fall.