Mumbai: Even after fag-end buying from operators and investors on hopes of interest rate cut by Reserve Bank Of India (RBI) due to fall in inflation figure, the S&P BSE benchmark Sensex snapped its last 2-week gains and ended lower by 169 points to close at 28,067.31.
Market was trading lower for first three trading days of the week following a surprise devaluation of the Yuan by China.
However, it recovered afterwards on hopes of interest rate cut by the RBI as consumer price inflation fell to multi year low in July.
Shares of metal, refinery, FMCG, power, capital goods, auto and consumer durable declined due to heavy selling.
However, IT and technology sector firmed up on good buying due to sharp fall in rupee value against the dollar. Healthcare sector also moved up on good enquiries.
Sensex resumed slightly higher at 28,250.78 and firmed up to 28,417.59, but dropped to 27,479.43 due to heavy profit-booking during the first three days of the week.
However, it recovered afterwards to close at 28,067.31, still showing a loss of 169.08 points or 0.60 percent.
The Sensex had gained by 124.08 points or 0.44 percent in previous two weeks.
The CNX 50-share Nifty also dropped by 46.05 points or 0.54 percent to 8,518.55 after moving in a range of 8,621.55 and 8,337.95.
It had gained 43.05 points or 0.51 percent in the previous two weeks.
The BSE Mid-Cap index fell 103.74 points or 0.90 percent to settle at 11,453.78. The BSE Small-Cap index declined 337.69 points or 2.79 percent to settle at 11,766.78.
Key benchmark indices rallied on Friday after data showed that annual wholesale prices continued to decline for the ninth consecutive month in July, raising hopes that RBI may lower key policy rates at its forthcoming Monetary Policy Review meet next month.
Inflation based on the wholesale price index (WPI) for July 2015 slipped further in negative terrain and stood at -4.05 percent (provisional) as compared to -2.4 percent (provisional) for the previous month.
Industrial production registered year-on-year growth of 3.8 percent in June 2015.
Foreign portfolio investors (FPIs) sold shares worth a net of Rs 2,443.55 crores during the week as per the SEBI's record including the provisional figure of August 14.
Among the 30-share Sensex pack, 19 stocks declined while rest of them gained.
Major losers were VEDL (17.19 pct), Hindalco (14.87 pct), Tata Steel (9.52 pct), Tata Motors (9.48 pct), Coal India (9.17 pct), SBI (4.60 pct), ONGC (4.16 pct), HUL (3.71 pct), BHEL (3.40 pct) and NPTC (3.29 pct).
However, Lupin rose by 5.86 pct, Sun pharma 5.57 pct, TCS 5.56 pct, Infosys 4.87 pct, Cipla 3.40 pct, Maruti 2.84 pct and Hero Motoco 2.01 pct.
Among the S&P BSE sectoral indices, Metal dropped by 9.99 pct, Oil&Gas 4.61 pct, FMCG 2.68 pct, Power 2.51 pct, Capital Godos 2.38 pct and Auto 1.54 pct.
IT rose by 4.06 pct, Healthcare 3.07 pct and Teck 2.41 pct.
Total turnover at BSE and NSE dropped to Rs 16,903.65 crores and Rs 89,408.51 crores respectively from the last weekend's level of Rs 19,574.56 crores and Rs 97,273.30 crores.
