Markets end weak on high Inflation

Benchmark share indices ended lower, amid a volatile trading session Wednesday, as higher-than-expected November inflation stoked fears of rate hike by the central bank.

November Inflation numbers came in at 9.11% vs 9.73% and 8.2%.

The food inflation tumbled to 8.54% in November from more than 11% in October, while fuel inflation increased to 15.48% from 14.79% and manufacturing inflation increased marginally, to 7.7% from 7.66%.

The above expected November inflation has created fears of rate hike by the RBI on the Monetary Policy to be announced on Friday.

The Bombay Stock Exchange's 30-share Sensex closed at 15,881 down 121 points.

The National Stock Exchange's 50-share S&P CNX Nifty closed down 37 points at 4,763.

On the global front, Asian markets ended marginally lower. European markets were trading dismal.

The euro hit 11-month lows and European stocks fell on Wednesday after the US Federal Reserve warned Europe's unresolved sovereign debt crisis could hurt the giant American economy.

The CAC, DAX and the FTSE were all down nearly 1%.

Back home, Metal shares were also among the top losers. BSE Metal index tumbled by 2%.

Tata Steel melted by 4%. Coal India, Hindalco, JSW Steel and Sterlite fell between 1-3%. Steel stocks were down because demand of steel has fallen below GDP growth for the first time.

Oil marketing companies such as BPCL, Essar Oil, GAIL India, HPCL, IOC and ONGC submerged between 1-4%. OMCs dropped as crude oil crosses $100 a barrel mark.

Index heavyweight RIL ended marginally lower.

Sources informed that Petrol prices may be hiked by Rs 0.65 per litre this week if state-owned oil firms manage to get political approval for the move.

Among Power sector, Tata Power declined 4% followed by NTPC, declining by 2%.
HDFC fell by 3%.

Bharti Airtel gained 1% after Bharti Telecom, the largest promoter group of Bharti Airtel, purchased shares of the company worth Rs 20.50

cr through open market transactions.

Mahindra & Mahindra Hero MotoCorp, Maruti Suzuki and Bajaj Auto were down between 1-4%. M&M fell by 4%.

Wipro ended slightly higher whereas Infosys declined by 0.5%. The Indian rupee lost 57 paise to a fresh all-time low of Rs 53.80 per US dollar in the early trades.

However, few main gainers on the Sensex were Sun Pharma, ITC and JP Associates, all gaining by 1% each.

Tata Communication rose 3% in otherwise weak market, as the government plans to sell of the surplus land held by the special purpose vehicle.

The Telecom Ministry has circulated a Cabinet note asking all the concerned ministries to give their comments in 15 days for selling 770 acres of surplus land of VSNL, a PTI report suggests.

ADAG stock like Rel Capital fell 4% after a parliamentary standing committee rejected the proposal to allow 49% foreign direct investment  in insurance, against the 26% FDI currently allowed in the sector.

Meanwhile, Meanwhile, BSE Midcap index plunged by 1% whereas BSE Smallcap index closed down 0.8%.

The market breadth in BSE ended unhealthy with 1079 shares advancing and 1627 shares declining.

In the Midcap and Smallcap space, IFCI fell 4% as Parliament panel finds CEO Atul Rai accountable for suppressing facts.

3i Infotech plunged 10% after lenders and investors shunned debt laden company, reports sources.

Pantaloon Retails touched 52-week low after Parliament panel rejected the government proposal to hike the FDI cap in the insurance sector to 49%.

Areva T&D India slipped 24% to Rs 140 on the BSE on demerging its distribution (medium voltage) business operations into wholly-owned subsidiary, Smartgrid Automation Distribution and Switchgear Limited.