Markets down on disappointing macro data

Mumbai: Key stock indices Sensex and Nifty declined over half a per cent on Thursday due to selling in financials, auto and realty shares after five-month high inflation fanned rate hike fears.

A weak rupee and rising crude prices also impacted the market sentiment, traders said. The 30-share BSE Sensex declined 390.58 points or 0.68 per cent to settle at 57,235.33. The broader NSE Nifty fell 109.25 points or 0.64 per cent to end at 17,014.35.

Vinod Nair, head (research) at Geojit Financial Services, said: "Retail inflation persisting above the desired levels has been a major cause of concern for the Indian economy. This, coupled with declining industrial production in August may not be taken well by the market because Indian economy is anticipated to sustain its resilience. In this backdrop, the impending US inflation figures, which are forecasted to remain high, may cause volatility in the global market." "Markets made a tepid start and settled with a cut of over half a per cent, tracking weak domestic cues. Mixed earnings and not so encouraging macroeconomic data dented sentiment," adds Ajit Mishra, V-P (research), Religare Broking Ltd.

Rupak De, senior technical analyst at LKP Securities, said: "Nifty remained volatile as investors stayed on the sidelines ahead of US inflation data. The index has found support at 200DMA for the third consecutive day. Investors are awaiting US consumer inflation to be released later on Thursday and retail sales data on Friday which, they expect, will reinforce Federal Reserve plans for more aggressive interest rate hikes."

Foreign institutional investors (FIIs) remained net sellers in the Indian capital market on Wednesday as they sold shares worth Rs 542.36 crore, as per exchange data.