Indian stocks continued their slide for the second day, with the benchmark 30-scrip BSE Sensex closing in the red. The broad based 50-share Nifty of the National Stock Exchange (NSE) closed flat.
The markets remained lethargic and undecided throughout the day in the absence of cues from the global and Indian economy. The companies are set to start declaring their Q3 results from next week, with Infosys leading, until then it appears investors are going to play cautious.
On the positive side, food inflation has not just cooled off, but has actually gone into the negative. Food articles, for the week ended December 24th was 3.36% negative.
The drop raises hope that RBI which has aggressively raised rates to cool inflation may go for a rate cut in the policy meet scheduled for 24th January.
While shares of major heavyweights like L&T, HDFC, ICICI Bank and BHEL rose, the stock markets were dragged down by selling pressure in RIL and ONGC. Both of which fell by 2.3% and 1.4% respectively.
Thursdayâ€™s trade saw a choppy session due to selling pressure in oil and gas, realty and metal stocks. The Sensex had opened in the positive at 15,893.07 points and closed at 15,857.08 points – down 0.16 percent or 25.56 points from its previous close at 15,882.64 points.
The benchmark index was largely range-bound. It touched a high of 15,980.17 points and low of 15,809.31 points in the intra-day. The Sensex had declined 0.36 percent Wednesday after a two-day rally.
However, the 50-scrip S&P CNX Nifty of the National Stock Exchange closed marginally in the positive. The Nifty ended the day 0.01 percent higher at 4,749.95 points. The BSE midcap index also closed flat at 5,264.17 points while the smallcap index advanced 0.21 percent.
Most of the sectoral indices closed in the red. The BSE oil and gas index slumped 1.68 percent. The realty index fell 1.65 percent and the metal index declined 0.74 percent.