Rate hike concerns hit bourses

Mumbai: Benchmark indices Sensex and Nifty gave up early gains to close lower for a fourth straight session on Thursday due to selling in IT and banking shares amid weak global equities. The 30-share BSE benchmark settled 98 points or 0.18 per cent lower at 53,416.15. During the day, it hit a high of 53,861.28 and a low of 53,163.77. The broader NSE Nifty also pared initial gains and ended 28 points or 0.18 per cent down to settle at 15,938.65.

Among the Sensex constituents, Axis Bank declined the most by 1.74 per cent. HCL Technologies, State Bank of India, Tech Mahindra, TCS, Wipro, UltraTech Cement and ITC were the major laggards. Sun Pharma, Dr Reddy's Lab, Maruti Suzuki India, Kotak Mahindra Bank, Titan and Reliance Industries were among the gainers.

Energy stocks gained after reports said that the government may review the windfall tax on petrol and diesel exports after a sharp decline in crude oil prices.

Reliance Industries rose by 0.83 per cent helping the index restrict losses. "Tracking weak cues in global markets, Indian indices gave away their initial gains amid concerns over higher-than-expected US inflation data. Investors are increasingly expecting the Fed to carry out a minimum 75bps rate hike this month in order to combat high inflation. On the domestic front, India's WPI inflation moderated in June although it remains at elevated levels," said Vinod Nair, head (research) at Geojit Financial Services.