Mumbai: The BSE Sensex and NSE Nifty closed lower for fifth consecutive session on Monday due to weakening rupee, waning of rate cut hopes after higher than expected inflation for April and Europe turmoil.
The BSE benchmark fell as much as 168 points to hit an intraday low of 16,124.82, before closing down 77.14 points or 0.47 per cent at 16,215.84. The NSE benchmark managed to settle above the 4900 level after struggling a lot the same level; index dropped 21.10 points to 4,907.80.
According to Sudarshan Sukhani of s2analytics.com, trend of the market is down. He advised traders to maintain complete position on the short side.
Nifty futures on the National Stock Exchange stopped trading for around half an hour around 14 hours IST while trading in the cash markets continued as normal.
Higher than expected spike in inflation to 7.23 per cent (from 6.89 per cent MoM due to manufacturing and food inflation) for April faded hopes of further rate cut by the Reserve Bank of India. Analysts on average had expected inflation at 6.7 per cent.
Portfolio manager PN Vijay says this will further fuel the bearish trend for equities. "The mood of the market is now governed by trading activity, so we will follow the global pattern with a bit of blips depending on domestic factors," he said.
European markets fell quite sharply ahead of Greek's politicians' last attempt to form government on Monday. If they fail to form a coalition, President will announce new elections. Experts feel that hope of government formation looks low now. Losing of elections by Chancellor Angela Merkel in Germany's most populous state 'North Rhine-Westphalia' on Sunday (indicating a tough fight for winning forthcoming elections) also added fuel to the fire.
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