The BSE Sensex and NSE Nifty ended the day down 202 points and 66 points due to accelerated inflation figures and Euro zone worries. Sensex closed at 16,678, while the Nifty closed at 5,055.
There were also concerns that the RBI may not cut rates aggressively. The banking stocks were among the top losers and the Bankex closed 2.82 per cent down.
“Market witnessed a sharp pull down in the afternoon session as WPI May inflation was announced. WPI inflation for the month of May rose to 7.55 per cent against the previous month’s figure of 7.23 per cent and previous year’s corresponding month’s figure of 9.56 per cent. Market reacted negatively to the news and slipped downwards,” said Ms Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
The revised March inflation figures also triggered negative sentiments in the markets.
On the global front, the European debt crisis deepened as credit ratings of Spain and Cyprus were downgraded by Moody’s.
American markets and Asian markets were down upwards of 0.6 per cent and 0.2 per cent respectively. European markets were down upwards of 0.2 per cent each.
The top gainers on the BSE were Infosys, Cipla and ITC, while the top losers were Tata Motors, L&T and NTPC.