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The stock markets closed in the red on Monday on the back of disappointing inflation data and weak global cues amidst a volatile trading session.
Moody’s downgrade of three private banks ICICI, HDFC and Axis further dampened market sentiment.
The Nifty was down 0.43 per cent or 22 points to close at 4,908 while the Sensex fell 0.47 per cent or 78 points and closed at 16,216. Realty, banks and oil and gas sector stocks were the worst hit.
Head of Fundamental Research, Kotak Securities Mr. Dipen Shah said: “After opening higher, Indian indices slid fast into the negative territory as soon as the inflation numbers were announced. At 7.23 per cent, the rate of inflation was higher than expected. The RBI will have to take this higher number into account as it tries to support the growth rate through any future rate cuts. The only silver lining is that the core inflation has not risen at a fast pace.”
Volatility was up, with the India Vix closing almost 3.47 per cent up at 23.26.
Asian Paints, Ranbaxy, SesaGoa, BPCL and Baja Auto were the top Nifty gainers while Cairn, Bank of Baroda, SAIL, Reliance Infrastructure and PNB were the losers on the Nifty.
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