Sensex down 87 points as rise in inflation dampens rate cut hopes

Mumbai, June 14 (IANS) A benchmark index for Indian equities markets was trading 0.52 percent down Thursday afternoon, affected by India's inflation which moved to 7.55 percent in May as compared to 7.23 percent in the previous month and dampening hopes of a rate cut.

The inflation was mainly driven by a sharp increase in the prices of food items, adding to the woes of policy makers.

The weakness of the rupee also affected market sentiments. It depreciated by 9 paise to 55.77 against the dollar.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), was ruling at 16,792.54 points - 87.97 points or 0.52 percent down from its previous close at 16,880.51 points.

The Sensex touched a high of 16,921.49 points and low of 16,768.19 points in the intra-day trade.

The capital goods index was down by 195.37 points, the banking index by 206.93 points and the power index by 20.40 points.

Major Sensex losers included NTPC, down 2.89 percent at Rs.149.75; Tata Motors, down 2.73 percent at Rs.231.35; Larsen and Toubro, down 2.70 percent at Rs.1,313.35; ICICI Bank, down 2.48 percent at Rs.828.05 and SBI, down 1.62 percent at Rs.2,186.30.

Major Sensex gainers included ITC, up 1.15 percent at Rs.246.40; Infosys, up 1.09 percent at Rs.2,498.20; Sterlite Inds, up 0.59 percent at Rs.102.30; Mahindra and Mahindra, up 0.55 percent at Rs.686.85; Tata Steel, up 0.46 percent at Rs.413.30.

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