The BSE Sensex fell 2.45 percent on Thursday, with automakers such as Mahindra & Mahindra, Tata Motors and Maruti Suzuki leading the drop in the last hour of trade.Sensex off close to 450 points from the day's high. The market breadth was weak.
Inspite the Good Inflation report which is better than Reuters Expectation the sharp slide materialised ahead of television reports at the fag end of the trading session that the monsoon rains were 66% below normal the week to 5 August 2009. Separate media reports suggested that monsoon rains during the period from 1 June 2009 to 4 August 2009 were 25% below normal. A weak monsoon may hamper economic growth.
The stock market was volatile today, The market drifted lower in earlytrade as weak Asian stocks and lower US index futures triggered profit taking after a recent strong rally. The market cut losses later as Asian stocks recovered. The recovery gathered steam with the Sensex moving to positive zone from negative territory as European stocks rose in early trade. The market pared gains in mid-afternoon trade. A sell-off gripped the bourses in the last one hour or so of trade.
Inflation based on the wholesale price index (WPI) declined 1.58% for the 12 months to 25 July 2009 compared to previous week's fall of 1.54% government data showed at 12:00 IST today. Inflation for the week ended 30 May 2009 was revised upwards to a rise of 0.9% from 0.13%. Finance Minister Pranab Mukherjee said on Thursday said the government will take appropriate action if needed to tame prices.
Foreign institutional investors' (FIIs) inflow in calendar year 2009 totaled Rs 36,360.70 crore (till 5 August 2009). However, foreign funds sold shares worth Rs 480.40 crore on Wednesday, 5 August 2009.
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