The Bombay Stock Exchange benchmark Sensex today wiped off the early gains and closed 114 points down weighed down by rising inflation and weak global cues.
The Sensex opened 74.45 points higher on investment buying in blue-chip stocks, and touched a high of 16227.04 but could not hold onto higher levels following high inflation data and closed 114.24 points, or 0.71 per cent down at 16,038.35 after touching a low of 16,011.82.
Marketmen said the sentiment was largely dampened towards the middle of the session after wholesale price-based inflation rose to 8.56 per cent in January, shooting past the RBI forecast of 8.5 per cent for this fiscal-end and analysts’ forecast of 8.2 per cent for January.
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Even Asian indices were mixed today despite a more-than-expected GDP growth in Japan for the December quarter at 4.6 per cent. Another reason for the poor show was the close to 9.25 per cent fall of Bharti Airtel to Rs 285.40 after it said it has entered into exclusive talks with Zain Telecom to buy its African operations.
The wide—based NSE index Nifty too fell by 24.90 points, or 0.52 per cent to 4,801.95, and touched a high of 4,845.60 and a low of 4,783.90. The Nifty opened 18.75 points higher.
Among the 30 Sensex stocks, 20 fell, while others gained.
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Bucking the trend were healthcare, IT and metal sectors.
Other major losers were Reliance 0.64pc, SBI 1.25pc, Tata Power 1.99pc, ACC 1.12pc, DLF 1.14pc, HUL 1.26pc and Maruti Suzuki lost 1.47 per cent.