Several share prices fall.
Shrugging off positive cues from easing inflation numbers, the BSE benchmark Sensex on Thursday, fell by 111 points, snapping a two-day rally, hit by 2-4 per cent losses in RIL, Bharti Airtel, SBI, Maruti and Wipro shares.
After a better start at 19,639.83, the Sensex tumbled by 110.90 points to 19,497.18 as investors adopted a cautious stance, wiping a major portion of the 147 point gained in the past two days.
The broad-based National Stock Exchange index Nifty lost 36 points, or 0.61 per cent to 5,896.95, after touching the day’s high of 5,940.20.
Bharti Airtel slumped by 4 per cent after reports said it faces significant spectrum charge demand by DoT.
Wipro fell by 3.3 per cent on selling due to its exclusion from NSE Nifty index from April 1, while Maruti Suzuki lost over 3 per cent on being dropped from MSCI India index from February 28.
State Bank of India shares also lost nearly 1.80 per cent after a lower-than-expected increase in net profit for the third quarter ended December 31, 2012. Similarly, RIL and L&T lost over 2.6 per cent each.
Declining for the fourth straight month, the Wholesale Price Index (WPI) inflation fell to a 3-year low of 6.62 per cent in January, but the data failed to spur rate cut hopes.
“After a disappointing IIP numbers but an easing inflation rate, investors are in a state of uncertainty regarding rate cuts in near future,” said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio Ltd.
A slew of weak third quarter earnings from GVK Power and Tata Steel also dampened the market sentiment.
Sector-wise the capital goods sector suffered the most by falling 2.27 per cent, followed by oil and gas index 1.59 per cent, auto index 1.49 per cent and power index 1.25 per cent.