BSE Sensex Ends Lower For Second Straight Day


MUMBAI: The BSE Sensex and the Nifty fell for a second consecutive session, with Nifty marking its biggest fall since March 3, as interest-rate sensitive shares such as Housing Development Finance Corp fell after wholesale inflation accelerated more than expected.

The wholesale price index (WPI) in March rose a much faster-than-expected 5.70 per cent from a year earlier, marking a three-month high and coming well above the 5.30 per cent increase forecast by economists.

Concerns that a rally that sent indexes to record highs last week may have been overdone also weighed, especially as Asian shares were hit by data showing China's money supply growing at the weakest pace in more than a decade. Foreign institutional investors, who have pumped in $4.8 billion so far in 2014, became net sellers worth 363 crore ($60.3 million) on Friday for the first time since March 10. Markets were closed for a holiday.

"With the Nifty seeing a one-sided rally for the last several weeks, investors may continue to book partial profits too. In the coming sessions, fourth quarter results, election outcome and global cues will have a major impact on the market trend," said by Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

"However, despite selling pressure, Nifty is seen holding above the 6700 level well, which shows optimism in the near term. The index can be seen trading in a compact range of 6650-6820 for the last few trading sessions," he added.

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Source: PTI