Equity indices close lower on global cues, macro-data (Second Lead)

Equity indices close lower on global cues, macro-data (Second Lead)

At 10.12 a.m, the Sensex was trading down 30.02 points or 0.09% at 33,003.54 with 20 components falling.

The market topped the key 33,000 level multiple times today, but closed below that threshold after rising inflation numbers squeezed the headroom for an interest rate cut at RBI's policy review next month.

Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined. "The weakness came on the back of weak global cues", Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS. However, emergence of selling at every rise wiped off initial gains and the index finally settled 91.69 points, or 0.28 % down at 32,941.87, its weakest closing since October 26.

On the currency front, the rupee closed flat at 65.42 against the U.S. dollar from its previous close. "Oil remained well supported as ongoing output cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) and Russian Federation contributed to a significant reduction in excess supplies, also as tensions in the Middle East raised the prospects of supply disruptions", Desai told IANS.

Uncertainty over U.S. tax reform, slowdown in Chinese factory output and growing political issues in the United Kingdom weaned investors away from placing more bets.


All the sub-indices of the BSE ended in the red except the IT index, which closed up 19.80 points.

Sectorwise, the S&P BSE capital goods index plunged by 260.55 points, followed by oil and gas index by 139.03 points and metal index by 90.19 points.

Share sale by foreign portfolio investors (FPIs) was worth a net Rs 233.58 crore yesterday, provisional data showed.

Shares of Larsen and Toubro fell 2.46% to become the biggest loser on the Sensex.

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