Sensex Hovers At 34,000, Down 250 Points As Financial Stocks Exert Pressure
The benchmark indices have shed more than half a per cent in mid-morning trading, dragged by weakness on the financial counters. Domestic stock markets started Thursday's session on a negative note, tracking a pause in global equities, after the US central bank said that recovery from the pandemic would take years. At 10:55 am, the Sensex traded 238.61 points - or 0.68 per cent - lower at 34,0132.43 and the Nifty was down 61.70 points - or 0.64 per cent - at 10,049.55.
Analysts await macroeconomic data due this week for more clarity on monetary policy going forward. The official data on consumer inflation will be released at 5:30 pm on Friday. Consumer inflation - or the rate of increase in retail prices determined by the Consumer Price Index (CPI) - is likely to have moderated to a six-month low of 5.50 per cent in May, according to a poll of 35 economists by news agency Reuters.
In other economy-related news, the credit rating agency Fitch Ratings said on Wednesday that the Indian economy is likely to bounce back with a sharp growth rate of 9.5 per cent next year, after the contraction in the current financial year, if it manages to avoid further deterioration in the financial sector,
On the same day, credit ratings agency Standard & Poor's (S&P) retained India's sovereign rating at "BBB-" - the lowest investment-grade level - with a stable outlook and promised to upgrade the country's ratings if the government significantly curtailed its fiscal deficit.
Petrol and diesel prices were hiked in metros on Thursday, marking the fifth straight day of increase. The price of petrol was revised to Rs 74 per litre in Delhi from Rs 73.40 per litre on the previous day, while the diesel rate was increased to Rs 72.22 per litre from Rs 71.62 per litre.
Financial stocks were trading weak this morning. KotaK Bank, ICICI Bank and HDFC Bank shed between 1.2 prt cent to 1.5 per cent each, on the NSE. On the other hand, IOC, Nestle India and Grasim had gained 1-2 per cent each on the NSE.
