Sensex falls for 4th day, dips 32 points
The Sensex, which had lost nearly 100 points in the past three trading sessions, fell further by 31.88 points, or 0.16% to 19,355.26. The gauge had touched the day's high of 19,478.79 on initial buying activity but fell after IIP and inflation data were released, brokers said. The 30-share index was dragged down by financial stocks, including HDFC, ICICI Bank and SBI. HUL, L&T, ONGC, Bhel and Tata Motors also were among the 20 losers in Sensex.
Similarly, the 50-issue S&P CNX Nifty of the NSE also moved down by 10.80 points or 0.18% to 5,888.00.
While retail inflation rose to 9.9% in November, from 9.75% in October, the country's factory output measured by the Index of Industrial Production (IIP) soared to 16-month high of 8.2% in October.
"The IIP number failed to excite the markets as they likely focused on the impact of this data on RBI's interest rate decision next week. We believe RBI will not reduce rates at mid-quarter policy review (Dec 18)," said Dipen Shah, head (Private Client Group Research), Kotak Securities.
The capital goods, metal and banking sectors suffered the most on Wednesday while consumer durables, auto and IT shares rose. "We do not expect it to ease rates until the fourth quarter particularly since inflation
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