Mumbai: Brushing aside rate cut hopes, the benchmark BSE Sensex on Tuesday slipped 150.77 points to 25,705.93, with investors staying away from firmer bets, as the focus shifted to US central bank?s policy meet for more cues.
Fresh weakness in China too weighed as the Shanghai index fell below the crucial 3,000-mark. Profit-booking was also seen in Monday’s gainers, which had got a boost on easing inflation numbers.
“Participants ignored the CPI inflation data announced post market,” said Jayant Manglik President of Retail Distribution at Religare Securities.
Bourses closed in red tracking mixed global cues and lack of conviction among participants ahead of the US Federal Reserve two-day policy meeting starting tomorrow, he added.
Meanwhile, government data which came out Mon day showed retail inflation fell to a new low of 3.66 per cent in August.
Even WPI inflation eased further to (-)4.95 per cent in August.
The data raised expectations that the Reserve Bank would cut interest rates for the fourth time this year at its policy review due on September 29.
The 30-share BSE index after shuttling between 25,909.83 and 25,649.37 during the session finally settled lower by 150.77 points or 0.58 per cent at 25,705.93. The gauge had gained 246.49 points in Monday’s session.
The NSE Nifty too edged lower by 43.15 points or 0.55 per cent to end at 7,829.10. Intra-day, it cracked the 7,800-mark to touch a low of 7,799.75 and a high of 7,880.00.
Tata Steel suffered the most among Sensex constituents by falling 5.08 per cent, followed by Vedanta (4.06 per cent).
Metal, capital goods, consumer durable, auto and banking shares came under heavy selling pressure.
In overseas markets, most of the Asian markets ended weak following overnight fall in US amid uncertainty ahead of a Fed meet.
Key indices China, Hong Kong, Singapore and Taiwan fell between 0.49 per cent to 3.52 per cent, while Japan and South Korea moved up by 0.32 per cent to 0.34 per cent.
European markets were also lower as key indices in France, Germany and UK moved down by 0.14 per cent to 0.65 per cent.
PTI