Indian benchmark indices closed in the red ahead of the inflation and industrial production data announcement. The 30-share BSE Sensex slipped 166.36 points or 0.53% to close at 31,095.70 points, while the 50-share NSE Nifty fell 51.85 points or 0.54% to close at 9,616.40 points. BSE Mid-cap Index closed down 79.27 points or 0.53% to close at 14,796.09 points while, BSE Small-cap Index fell 95.11 points or 0.61% to close at 15454.06 points.
Macroeconomic data released after market hours showed that India’s annual Consumer Price Index (CPI) inflation for May fell to 2.18% from 2.99% in April, while the annual Index of Industrial Production (IIP) for April rose 3.1% from 2.7% in March.
Bank stocks remained weak throughout the day, even as Finance Minister Arun Jaitley met with the heads of Public Sector Banks (PSU), which were trading in the red zone throughout the day. Canara Bank was the top loser in the Bank Nifty index as it’s shares closed 3.98% lower at Rs 346.1 per share. Bank Nifty closed lower by 220.45 points or 0.93% at 23,470.45 points. another reason for the bank’s stocks being under pressure was the Maharashtra government decision to waive off farms loans of small and marginal farmers.
Finance Minister Arun Jaitley discussed finances of public sector banks, their bad loans status, with heads of the lenders. He said the RBI is in an advanced state of preparing a list of bad loans where resolution is required under the insolvency and bankruptcy rule. Also, the government is actively working on consolidation of state-owned banks, he added.
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Reliance Communications met an inter-ministerial group (IMG) to discuss the financial stress and other operational issues that the telecom sector is facing. It’s stock rose an intraday high of Rs 19.15 per share, up 4% before closing marginally lower at Rs 18.35 per share.
Jewellery stocks were on an uprise as the GST council lowered tax rate on jewellery making charges to 5%. Shares of Tribhovandas Bhimji Zaveri closed at Rs 91 per share up by 1.9%. However, shares of PC Jewellers closed 0.3% lower at Rs 528.35.
The Indian Rupee fell 20 paise or 0.31% against the US dollar to close at 64.44 aginst its yesterday’s close of 64.24.