WPI inflation, Iraq crisis dampen trading sentiment

The Sensex and Nifty ended the session marginally in the red on the back of poor performance by capital goods, auto and banking stocks amid weak global cues.

Funds and retail investors indulged in profit-booking due to weak global cues amid fears over the escalating crisis in Iraq.

Besides, rise in WPI inflation to 6.01 per cent in May from 5.2 per cent in the previous month dampened the investor sentiment.

The 30-share BSE index Sensex ended at 25,190.48, down 37.69 points and the 50-share NSE index Nifty ended at 7,533.55, down 8.55 points.

Among BSE sectoral indices, realty, IT and TECk indices were the star-performers and were up 1.7 per cent, 1.54 per cent and 1.24 per cent, respectively. On the other hand, capital goods index was down 1.17 per cent, followed by auto 1.07 per cent and banking 0.52 per cent, respectively.

Among 30-share Sensex constituents, GAIL, Sun Pharma, TCS, Infosys and Tata Power were the major gainers, while the major losers were Axis Bank, M&M, L&T, RIL and Tata Motors.

European stocks dropped for a second day as Sunni insurgents made further territorial gains in Iraq, while investors awaited a report on US industrial production. Asian shares were down.

Army troops had killed more than 270 rebels yesterday in Iraq, OPEC’s second-biggest crude producer, as the prospect of civil war intensifies with Sunni Muslim insurgents controlling territory north of Baghdad.

(This article was published on June 16, 2014)
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