The rise in food inflation has a negative impact on the market
The Bombay Stock Exchange sensitive index, Sensex, closed lower by 26 points at 17730.24 on Thursday against 17755.94 on heavy selling in ICICI Bank and Reliance Industries shares. The 30-share index was trading in the green till mid-session, but it pared the 90-point gain, with investors tracking cues in European bourses, which opened on a weak note.
Similarly, the National Stock Exchange's wide-based Nifty Index finished also finished lower at 5320.60 against 5323.21. According to analysts, the rise in food inflation had a negative impact on the market sentiment. Food inflation rose to 16.9 per cent for the week ended June 12 from 16.12 per cent in the previous week. Brokers said ICICI Bank, which took a hit of 1.90 per cent to Rs. 884.85, mainly dragged down the Sensex. Reliance, which acquired a second shale gas property in the U.S. for $1.3 billion, lost 0.69 per cent to Rs. 1,051.30. Markets across the globe weakened after the U.S. Federal Reserve said the recovery in the world's biggest economy is modest.
Rupee dips 32 paise
The rupee declined by 32 paise to 46.50 against the dollar on Thursday. It closed at 46.18 on Wednesday. The rupee opened slightly lower at 46.19/20 and later moved in a range of 46.17 and 46.50 before settling at 46.49/50, a fall of 32 paise.