Mumbai: The benchmark BSE Sensex Tuesday edged lower by 28 points to close at 27,932.90 with auto, bank and realty stocks taking the worst hit after retail inflation rising to a eight-month high dampened rate cut hopes.
The fall was, however, cushioned by wholesale inflation, which kept in the negative zone for the eight straight month.
"CPI rise does not offer the markets much to cheer about it, but it is not at a panic level..." said Anand James, Co Head of Technical Research Desk at Geojit BNP Paribas.
Consumer Price Index (CPI) reported yesterday showed retail inflation surging to a eight-month high of 5.4 percent in June mainly due to costlier food items.
Meanwhile, declining prices of vegetables and fuel kept the Wholesale Price Index (WPI) in negative for the eighth straight month at (-) 2.4 percent in June.
The 30-share Sensex resumed higher at 27,986.92 and hovered in a wide range of 28,018.59 and 27,853.96 before concluding at 27,932.90, showing a loss of 28.29 points or 0.10 percent.
The gauge had gained 387.53 points or 1.41 percent in the previous two sessions.
The 50-share NSE Nifty also moved down by 5.55 points or 0.07 percent to 8,454.10.
IT, Teck, metal and healthcare shares firmed up on good buying enquiries, while auto, realty and banking sectors tanked heavily.
Prices of oil extracting companies, Aban Offshore and Dolphin Offshore surged 15.6 percent and 8 percent, respectively, in the day.
"...Nuclear deal between Iran and other six major powers which could ease the sanctions against Tehran and would boost oil exports once again, led to further fall in crude oil prices," said Hiren Dhakan, Associate Fund manager at Bonanza Portfolio.
Stocks of state-run oil marketing companies such as HpercentL, BpercentL and IOC registered gains up to 3.09 percent following the deal amid a tumbling crude oil price overseas.
Globally, Brent crude tumbled almost 2 percent and was trading below USD 57 a barrel level.
In overseas markets, European stocks were trading lower, with energy shares falling after Iran reached a historic nuclear deal.
Key indices in France, Germany and the UK fell in the range of 0.03 percent to 0.46 percent.
Among other Asian markets, Shanghai Composite settled down 1.16 percent and Hang Seng index was off 0.41 percent.
South Korea's Kospi was also quoted lower by 0.11 percent. However, indices in Japan, Singapore and Taiwan moved up by 0.09 percent to 1.47 percent.
Back home, 17 scrips out of the 30-share Sensex pack ended higher.
Pramit Brahmbhatt, Veracity Group CEO said: "Local equities traded flat and looked to consolidated ahead of the major US economic data due for the week, which will show the road ahead to the market."
Major losers were Tata Motors (4.10 percent), Hindlaco (1.83 percent), SBI (1.81 percent), Vedanta (1.63 percent) and Tata Steel (0.97 percent).
However, Coal India rose by 3.33 percent, Infosys 2.11 percent, HUL 1.91 percent, Hero MotoCorp 1.52 percent, BHEL 1.35 percent, Lupin 1.28 percent, Wipro 1.18 percent, Cipla 0.75 percent and Dr Reddy's 0.48 percent.
Among the sectoral indices, IT rose by 0.89 percent, metal 0.70 percent, teck 0.68 percent, healthcare 0.64 percent and oil&gas 0.64 percent, while auto fell by 0.93 percent, realty 0.56 percent and bankex 0.55 percent.
However, the market breadth remained strong as 1,558 stocks gained, 1,276 declined and 119 ruled steady.
Total turnover rose to Rs 2,908.95 crore from Rs 2,545.13 crore yesterday.
