The Hindu Business Line : Sensex sheds 348 points

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Mumbai Feb. 12 Rising inflation numbers, high interest rates and negative cues from global markets pushed down the equity markets for a second consecutive session on Monday.

The BSE-30 Sensex shed 348.20 points or 2.39 points to close at 14,190.70 points while the S&P CNX Nifty closed down 3.08 per cent at 4,058.30 points.

"There are concerns about rising inflation, slow credit growth and high interest rates. Also, corporate borrowings have increased which will get reflected in the next two-three quarters. At some time, markets had to react," said Mr Jayant Pai, Vice-President — Institutional Equity Sales, Parag Parikh Financial Advisory Services Ltd.

Small, mid-caps

Even the small and mid cap stocks took a heavy beating. The BSE Mid-Cap Index fell 4.01 per cent and the BSE Small-Cap Index fell 4.84 per cent.

"Even though markets have fallen, local funds are adopting a wait-and-watch policy. Huge buying will happen only when FIIs pump in money. There is a need to use the stock-specific and bottom fishing approach from now on," said Mr Kalpesh Parekh, Head of Institutional Sales, Ask Raymond James and Associates.

FIIs net buyers

FIIs were net buyers for Rs 100.45 crore as per provisional figures on the NSE while mutual funds were net sellers at Rs 585.42 crore till February 9.

Stocks of 28 Sensex companies ended lower with Hindalco Industries Ltd stock closing down 13.74 per cent at Rs 149.45.

Reliance Communication scrip fell 4.32 per cent at Rs 455.

BSE Metal index was the biggest loser, down 5.46 per cent at 8,616.43 points.

Overall market breadth was overwhelmingly negative with one stock gaining for every fall in seven stocks. Stocks of 334 companies advanced while 2,308 stocks declined on the BSE.

Volumes were decent on the BSE with the total turnover at Rs 4,318.48 crore.

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