Both the Sensex and the Nifty trimmed their initial losses after the data released today showed WPI inflation came in at 2.38 per cent, much lower than 3.74 per cent recorded in the previous month. But heavy selling in realty stocks dampened the domestic sentiment.
Realty stocks plunged over 9 per cent, after SEBI barred DLF from tapping the capital markets for three years for “active and deliberate suppression” of material information at the time of its IPO. DLF shares tanked by over 28 per cent — probably its biggest one-day fall — on the back of SEBI imposing a three-year ban on the company and its top executives from securities market.
Among BSE sectoral indices, realty index plunged the most by 9.24 per cent, followed by IT 0.77 per cent, consumer durables 0.63 per cent and oil & gas 0.54 per cent. On the other hand, power index was up 0.57 per cent, India infrastructure index 0.53 per cent and banking 0.52 per cent.
BHEL, Axis Bank, Bajaj Auto, Tata Power and Bharti Airtel were the major Sensex gainers, while the major losers were Tata Motors, HDFC, ONGC, ITC and HDFC Bank. The benchmark BSE Sensex rose over 123 points in early trade after the domestic sentiment was buoyed on the back of strong second quarter earnings posted by RIL and easing retail inflation that dropped to 6.46 per cent in September.
Shares of RIL rose 0.34 per cent to Rs 961.10 after the company posted 1.7 per cent rise in its second quarter net profit to Rs 5,972 crore. Meanwhile, the retail inflation dropped to 6.46 per cent in September due to falling prices of fruits and vegetables, the lowest since India started computing Consumer Price Index (CPI) in January 2012.
Meanwhile, the provisional data released by the stock exchanges showed that foreign portfolio investors (FPIs) sold shares worth Rs 671.06 crore yesterday.