The BSE benchmark Sensex declined by 39 points in early trade after hitting a 3-month high due to mild selling as oil prices hovered around two-and-a-half year highs, which raised inflation and interest rate worries.
High oil prices have also raised concerns about a higher oil subsidy bill for the government and its negative impact on the government’s fiscal position.
India’s largest bike maker by sales Bajaj Auto fell 1.13 per cent to Rs. 1,441.20 and was the top loser from the Sensex pack.
The BSE benchmark Sensex resumed higher at 19,731.38 and shot up further to 19,770.21. But it declined immediately to 19,625.90 before quoting at 19,663.16 at 1015 hours, showing a net loss of 38.57 points, or 0.20 per cent.
The NSE’s 50-share Nifty also moved down by 10.85 points, or 0.18 per cent, to 5,897.60 at 1015 hours from its last close.
As per provisional figures, foreign funds bought shares worth Rs. 604.51 crore while domestic funds sold shares worth Rs. 389.33 crore yesterday.
Asian stocks were mixed after Japan’s Tokyo Electric Power Co began dumping radioactive water from its crippled nuclear plant. The key benchmark indices in Indonesia, South Korea and Japan were down between 0.01 per cent and 1.15 per cent, while Singapore’s Straits Times edged up by 0.39 per cent. Markets in China, Hong Kong and Taiwan were closed for a public holiday.
