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  • Tuesday, October, 2021| Today's Market | Current Time: 01:59:34
  • Sensex sheds 62 pts over rate hike concerns

    Published on January 4, 2011

    The BSE benchmark Sensex rose by nearly 90 points in the opening trade on Tuesday, extending its four-session gaining streak on sustained buying by funds and retail investors, in tandem with firming trend on other Asian bourses.

    The BSE benchmark Sensex today closed over 62 points down amid concerns that the central bank is likely to hike short-term interest rates at its forthcoming monetary policy review, a step that might hamper economic growth.

    The 30-share index of the Bombay Stock Exchange (BSE) fell by 62.33 points to 20,498.72 as interest rate-sensitive banking, realty, consumer durable and auto stocks witnessed profit-booking by investors.

    The Sensex had opened on a firm note and climbed to an intra-day high of 20,651.21 points.

    In the past four sessions, the barometer gained almost 535 points.

    Similarly, the broad-based National Stock Exchange Nifty index rolled back to close with a loss of 11.25 points at 6,146.35 after rising to an intra-day high of 6,181.05.

    Market analysts said the major concerns that led to the decline in the stock market was the apprehension that the Reserve Bank of India is likely to hike interest rates to curb rising inflation.

    Banking and other interest-sensitive stocks suffered the most.

    The banking sector index fell by 2.48 per cent to 13,121.12, led by the country’s biggest lender, State Bank of India, which tanked by 3.09 per cent to Rs 2,733.60.

    In addition, the realty sector index lost 1.12 per cent to 2,838.54, while the consumer durables index shed 0.59 per cent to 6,416.70.

    The auto sector index also declined by 0.55 per cent to 10,162.24 over concerns that the interest rate hike might deter prospective buyers, while the metal index shed 0.38 per cent to 17,890.55.

    With selling pressure spread across sectors, the midcap sector index lost 0.26 per cent to 7,853.03 and the smallcap index fell by 0.04 per cent to 9,841.17.

    However, a rise in Reliance Industries by 2.12 per cent to Rs 1,076.55 and Infosys Technologies by Rs 0.44 per cent to Rs 3,468 on the BSE, helped avert a major fall.