Mumbai, August 04: Extending losses for the third day, the benchmark Market plunged by 247 points to close at a six-week low on across-the-board selling by investors after food inflation crossed 8 percent mark fanning fears of yet another rate hike.
After a promising opening, the 30-share Bombay Stock Exchange came under hectic selling after midsession and closed at 17,693.18, a steep fall of 247.37 points or 1.38 percent.
All 13 sectoral indices ended in the red, with realty, auto, FMCG and metal segments suffering the most.
In straight three days, the market has tumbled by 621.15 points or 3.39 percent and in last eight trading sessions, since July 26 when the apex bank hiked interest rates, crashed by a total 1,178.11 points, or 6.24 percent.
Brokers said heavy selling by foreign funds dampened the market mood. FIIs sold shares worth Rs 869.69 crore yesterday as per provisional data.
“Sell off intensified in the second half of the session as the sentiments turned negative on high inflation statistics despite the aggressive hike in the interest rates by the RBI,” Shanu Goel, Senior Research analyst-Bonanza Portfolio said.
The official data showed a rise in inflation to 8.04 percent for the week ended July 23, from a 20-month low in the previous week, renewing fears of interest rate hike by RBI.
Market analysts said sentiment was also impacted by Finance Minister Pranab Mukherjee’s speech in Parliament on price rise which did not outline any further strategy to control inflation.
The broader NSE 50-issue Nifty also plunged by 73 points or 1.35 percent to 5,331.80.
–Agencies