Market extends losses for 5th day on global cues
“The markets largely followed global cues. The lukewarm response to the 2G telecom spectrum auction also added to the negative mood,” said Rikesh Parikh, VP, market strategist, Motilal Oswal Securities. The broader 50-share NSE Nifty slipped 36 points, or 0.63%, at 5,631 on Thursday, while the BSE Sensex ended the day down 147 points, or 0.79% to close at 18,471.
According to a report by foreign brokerage Nomura, the government has managed to raise just R9,400 crore against its budgeted target of R40,000 crore in its recently conducted telecom spectrum auction. The missed target will make it even more difficult for the government to achieve its revised fiscal deficit target of 5.3% of GDP, according to Nomura.
India’s industrial output growth contracted 0.4% year-on-year in September, lower than August’s 2.3% expansion. CPI inflation was broadly unchanged at 9.75% y-o-y in October from 9.73% in September, while the October WPI inflation tapered down to 7.45% from the earlier trend of 7.5%-plus levels in the last 10 months. “The low IIP numbers, coupled with the inflation data, has raised hopes that the RBI might step in to reduce key policy rates earlier than expected,” said Parikh.
On Tuesday, the day of Muhurat trading, foreign institutional investors (FIIs) sold shares worth R18 crore, while domestic institutional investors
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