Friday, April 04, 2008
Stock Market surrender to Inflation
The BSE benchmark Sensex ended down by 489 to close at 15,343 and the Nifty index ended 124 points lower to 4,647.
Last trading session of the week ended with a deeper cut as bears squeezed almost 500 points from the benchmark Sensex after India's inflation, based on the Wholesale Price Index (WPI), surged to a three-year high of 7% in the week ended March 22 as against 6.68% in the previous week.
The start itself was a weak one following negative cues from the Asian markets and sentiments further dampened after inflations figures hit the 7% mark. Selling was seen all over as all the BSE Sectoral indices ended in red with BSE Capital Good, Bankex and Power index were among the major losers. Finally, the BSE benchmark Sensex ended down by 489 to close at 15,343 and the Nifty index ended 124 points higher to 4,647.
Among the 50-Nifty 43 stocks ended in red and only 7 stocks ended in green. Overall about 808 stocks advanced; 1,823 stocks declined while 66 stocks remained unchanged.
Among the BSE Sectoral indices, the BSE Capital Good index (down 4.5%), BSE Power index (down 3%), BSE Bankex index (down 2.9%), BSE Auto index (down 2.5%) and BSE Oil & Gas index (down 2.3%).