Business & Finance

High Inflation, Weak Global Cues Drag Sensex 390 Points Down

The 30 stock S&P BSE Sensex closed 390.58 points or 0.68 per cent down at 57,235.33 points against its previous day’s close at 57,625.91 points

Mumbai: The Indian stock market’s benchmark Sensex slumped 390 points on Thursday as a surge in inflation and poor industrial output amid weak global cues dampened investors’ sentiments.

The 30 stock S&P BSE Sensex closed 390.58 points or 0.68 per cent down at 57,235.33 points against its previous day’s close at 57,625.91 points. The Sensex started the day in the red at 57,512.74 points and it slumped to a low of 57,055.75 points in the intra-day. The Sensex touched a high of 57,568.14 points in the intra-day.

The Sensex had gained 478.59 points or 0.84 per cent on Wednesday.

The broader Nifty 50 of the National Stock Exchange slumped 109.25 points or 0.64 per cent to close at 17,014.35 points against its previous day’s close at 17,123.60 points.

The Nifty had surged by 140.05 points or 0.82 per cent on Wednesday.

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Poor performance of industrial sector and surge in inflation have dampened investors’ sentiments.
As per the National Statistical Office (NSO) data released on Wednesday, India’s retail inflation surged to 7.41 per cent in September, remaining above the Reserve Bank of India’s mandated range of 2-6 per cent for the third straight quarter that would force the central bank to explain to the government the reasons for not being able to control the price rise.

The Consumer Price Index (CPI) based inflation rose to 7.41 per cent in September from 7 per cent in the previous month. CPI based retail inflation stood at 4.35 per cent in September 2021.

Poor performance of industrial production also dampened investors’ sentiments. India’s industrial production contracted by 0.80 per cent in August against 2.2 per cent growth recorded in the previous month. Industrial production as measured in terms of the Index of Industrial Production (IIP) had posted a growth of 13 per cent in August 2021.

IT firm Wipro slumped by more than 7 per cent a day after announcing financial results for the second quarter of the current financial year.

Wipro tumbled 7.03 per cent to close at Rs 379.10 on the BSE. On Wednesday Wipro announced 9.2 per cent decline in its net profit. The company’s net profit fell to Rs 2,659 crore for the July-September quarter of the current financial year as against Rs 2,930.7 crore recorded in the corresponding period of the last fiscal.
State Bank of India (SBI) slumped 2.36 per cent to Rs 521.35. L&T fell 1.85 per cent to Rs 1876.

ICICI Bank, Bajaj Finance, Asian Paints, Axis Bank, HDFC Bank, Bajaj Finserv and Hindustan Unilever were among the major Sensex lowers.

HCL Technologies jumped by more than three per cent after announcing better-than-expected quarterly numbers.

Sun Pharma jumped 1.36 per cent to Rs 968.50. Reliance Industries Limited closed 0.37 per cent higher at Rs 2383.85. Only eight out of the 30 scrips that are part of the benchmark Sensex closed in the positive.

(Except for the headline, this story has not been edited by HW News staff and is published from a syndicated feed.)

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