Sensex, Nifty Extend Fall For Fourth Day Amid Weak Global Cues

Indian equity benchmarks on Thursday extended their fall for the fourth consecutive day amid weak cues from the global markets. U.S. stock futures were weak after its consumer inflation surged to a more than 40-year high of 9.1 per cent in June, signalling an aggressive interest rate hike by the Federal Reserve. Most Asian stocks also traded lower over worries that a faster rate hike to tame inflation could push the economy into recession.

Although, oil prices declined on concerns that a sharp U.S. rate hike could stem inflation but at the same time reduce crude demand. Brent crude futures fell 2.23 per cent to $97.35 a barrel.

Moreover, domestic indices reversed their early gains as wholesale price-based (WPI) inflation stayed in double digits for the 15th straight month. The figure stood at 15.18 per cent in June. June's retail inflation -- at 7.01 per cent -- staying above Reserve Bank of India's (RBI's) upper tolerance limit for six months in a row also dampened investors' sentiment.

The 30-share BSE Sensex fell 98 points or 0.18 per cent to close at 53,416, while the broader NSE Nifty moved 28 points or 0.18 per cent lower to settle at 15,939.

Mid- and small-cap shares finished on a weak note as Nifty Midcap 100 shed 0.09 per cent and small-cap slipped 1.14 per cent.

13 out of the 15 sector gauges -- compiled by the National Stock Exchange -- settled in the red. Sub-indexes Nifty PSU Bank and Nifty IT underperformed the NSE platform by falling as much as 2.21 per cent and 1.58 per cent, respectively.

However, Nifty Pharma and Nifty Auto climbed as much as 0.78 per cent and 0.13 per cent, each.

On the stock-specific front, Axis Bank was the top Nifty loser as the stock cracked 1.62 per cent to Rs 668.90. HCL Tech, Hero MotoCorp, Tech Mahindra and SBI were also among the laggards.

The overall market breadth stood negative as 1,388 shares advanced while 1,928 declined on BSE.

On the 30-share BSE index, Axis Bank, HCL Tech, SBI, TechM, TCS, Wipro, UltraTech Cement, ITC, Infosys, Bajaj Finance, HDFC Bank and Bajaj Finserv were among the top losers with their shares down as much as 1.74 per cent.

Further, shares of Life Insurance Corporation of India (LIC), the country's biggest insurer and largest domestic financial investor, fell 0.95 per cent to end at Rs 712.15.

In contrast, Sun Pharma, Dr Reddy's, Maruti, Kotak Mahindra Bank, Titan, Reliance Industries, Nestle India, PowerGrid, Tata Steel, IndusInd Bank, NTPC, HDFC and M&M finished in the green.