Sensex ends below 16K on record low rupee, inflation concerns

The Indian markets erased previous session’s gains as higher monthly inflation and falling rupee weighed. The Sensex fell 121 points and the Nifty declined 37 points

Headlines for the day

November inflation at 9.11% vs 9.73% in October

Reliance Capital hits 52-week low on insurance FDI rejection

Areva T&D hits 52-week low on demerger of distribution business

Cable service providers rise as Lok sabha passes bill



Indian indices

Again it turned out to be a volatile session, with the Indian markets struggling for direction all throughout the day. Major disappointment today was inflation for November at 9.11%, which came in higher than the Street’s estimates. The rupee hit another record adding to the market woes.

Selling pressure in realty, metal, power, consumer durables, auto, and PSU stocks dragged the markets lower. Weak European cues too weighed on the sentiments. The Sensex fell below the 16000 mark and the Nifty below 4800 level.

Sensex movements: The Sensex opened the session 39 points lower at 15964 as against the previous close of 16003. Volatility was high in today’s trade. In the mid-morning session, the index hit an intraday high of 16133 before the release of inflation data. Later, the index came under pressure in the late morning trade as soon as the inflation data was out. Concerns over inflation, falling rupee coupled with weakness in Europe dragged the index to an intraday low of 15855 in the late trade. The Sensex closed 121 points lower at 15881 and the Nifty fell 37 points to settle at 4763.

Market sentiment

The market breadth stood in favour of declines. Of the 2866 stocks traded on the BSE, 1080 (37.68%) rose, 1626 (56.73%) fell and 160 (5.58%) remained unchanged.

Viewing volumes

A Jaypee Group firm - Jaiprakash Associates was traded the most, with over 0.34 crore shares changing hands on the BSE. Following that Industrial finance company - IFCI (0.30 crore shares), India's leading retailer - Pantaloon Retail (0.28 crore shares), Wind turbine major - Suzlon Energy (0.27 crore shares) and an integrated infrastructure development company - Lanco Infratech (0.27 crore shares).

Sectoral & stock screening

All the sectors were in red barring BSE FMCG up by 0.23%. The major losers - BSE Realty dipped by 2.42%, BSE Metal slipped by 2.16% and BSE Power fell by 2.09%.

Among 'A' group stocks, top three gainers - Sun TV Network up by 5.01%, Glenmark Pharmaceuticals up by 3.50% and Pidilite Industries up by 3.24%. Top three losers — Pantaloon Retail slid by 9.87%, Sintex Industries dropped by 7.83% and Jain Irrigation Systems fell by 7.03%.

Global indices

The European shares fell on Wednesday (December 14, 2011) after the Federal Reserve warned that turmoil in Europe presents a big risk to the US economy, but failed to take any new steps to stimulate growth.

The Asian stocks closed lower on Wednesday after the Federal Reserve refrained from offering new initiatives to help a slowly recovering US economy.

The US stock index futures pointed to a higher open on the Wall Street on Wednesday.

Market outlook: In the US, Import & Export Prices and EIA Petroleum Status Report will be released on Wednesday.