Indian Markets close 1% lower on profit booking - LuvKush Finserve

Benchmark share indices ended nearly 1% lower on Wednesday as investors booked profits in rate sensitive shares after hopes of a rate cut remained elusive as inflation remained above the central bank's comfort zone. The Sensex at the close was down 169 points or 0.85% at 19,818 and the Nifty gave up 55 points or 0.90% at 6,002.

The broader markets too cracked, as both the smallcap and the midcap indices slipped 1.3% each. After a flat opening, the markets continued to trade weak through the day as weakness in rate sensitives weighed on the indices. Interest rate-sensitive fell as the Reserve Bank of India Governor D Subbarao stated that India's inflation has come off a peak but is still high, a comment that is likely to cool expectations for a rate cut later this month.

On the sectoral front, all the indices except Oil & Gas, closed in the red. Auto, Metal, Banks, Realty, Capital Goods, PSU and Power indices closed down 1% each. Meanwhile, Oil & Gas index gained 0.3% on the back of gains in Reliance Industries ahead of its Q3 numbers, which closed up 1.6% at Rs 859.50. All the major auto scrips were in the red. Tata Motors slipped over 3% after the company said that its global sales in December 2012 declined by 13.88% to 98,968 units against 114,920 units sold during the corresponding month in 2011.

Source : Equity Bulls

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