The BSE Sensex fell 77 points on Monday at the release of a higher-than-expected inflation data for April. Metal, automobile and power stocks came under intense selling pressure.
Amid volatile trade, the 30-scrip benchmark of the Bombay Stock Exchange (BSE), which opened at 16,318.36 points, closed at 16,215.84 points - down 0.47 per cent, or 77.14 points, from its previous close.
The Sensex touched a high of 16,390.33 points and a low of 16,124.82 intra-day. The midcap index of the BSE fell 59.76 points, while smallcap index closed 80.81 points down.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange closed 0.43 per cent lower at 4,907.80 points.
The Sensex and Nifty, which were up in the early morning trade, plunged as soon as the inflation data was released.
The monthly inflation, represented by the wholesale price index or WPI index, stood at 7.2 per cent against 6.9 per cent in March 2012. Food articles inflation was at 10.5 per cent. The unexpected spike reduced the prospects of further interest rate cuts.
The healthcare index was up 0.78 per cent followed by IT index, up 0.41 per cent, and consumer durable index up 0.36 per cent. The capital goods index was up 0.34 per cent followed by FMCG, up 0.28 per cent.
The metal index fell 0.55 per cent, auto index declined 0.65 per cent, and power index closed 0.79 per cent down.
Major Sensex losers included DLF, down 2.64 per cent at Rs 182.35; Tata Motors, down 2.42 per cent at Rs 290.20; RIL, down 2.32 per cent at Rs 681.15; HDFC Bank, down 2.02 per cent at Rs 500.50; and BHEL, down 1.99 per cent at Rs 216.75.
Major Sensex gainers included: Larsen & Toubro, up 1.84 per cent at Rs 1,159.80; Bajaj Auto up 1.80 per cent at Rs 1,583.15; Tata Power up 1.51 per cent at Rs 93.85; Sun Pharma up 1.26 per cent at Rs 576.85; and Infosys up 1.13 per cent at Rs 2,338.