The stock market registered modest losses after previous three sessions of gains. The Sensex and Nifty almost traded in negative terrain throughout the session after a shaking start. BSE Sensex closes 227.80 points lower at 33,227.99 while the NSE Nifty50 falls 82.10 points to close at 10,240.15.
The indices settled lower on worries that higher global Crude Oil Prices would stoke inflation and impact future interest rate decisions by the RBI, with oil marketers and bank stocks weighing on the Nifty50.
Telecom stocks dropped. Index heavyweights HDFC Bank, ITC and Coal India dragged the indices lower. Banking stocks underperformed with Tata Power, Bharti Infratel, BPCL, IOCL being the worst performers of the day, with crude prices rallying on the back of the North Sea pipeline outage.
The Nifty Bank index fell as much as 1% after gaining 2.2% in the last three sessions. Oil marketing shares such as BPCL, IOC and HPCL fell 2 to 4% and were the worst hit on the Nifty50 as higher crude oil prices will hit their profitability. ONGC, Dr.Reddy’s, Adani Ports, GAIL-India and Lupin were the top gainers on the Nifty50, whereas HPCL, Infratel, BPCL, Coal India and Eicher were the top losers.