Indian shares ended on a lackluster note on Tuesday, with benchmark indexes Sensex and the Nifty closing narrowly mixed showing little change after Reserve Bank of India governor D Subbarao said India's wholesale and consumer inflation numbers are way above the central bank's comfort level.
Concerns over the slow progress of the monsoon, rising crude prices, a volatile rupee and apprehensions over the ability of the government to deliver sustainable economic growth through economic reforms post the presidential elections also prompted investors to remain on the sidelines ahead of Federal Reserve Chairman Ben Bernanke's Congressional testimony later in the global day.
Global cues remained firm on continued hopes for additional monetary stimulus from major central banks led by China and the U.S., helping limit any downside. The BSE Sensex rose 2 points or 0.01 percent to 17,105, while the broader Nifty index ended down 4 points or 0.08 percent at 5,193.
Rate-sensitive automakers such as Bajaj Auto, Mahindra & Mahindra and Tata Motors led the declines in the Sensex pack, falling between 1.5 percent and 2.5 percent, as the prospects of rate cuts in the forthcoming monetary policy review meeting diminished. There was also speculation that the government will hike fuel prices in the near term.
Infosys hit a fresh 52-week low before ending marginally lower. Axis Bank fell 2.1 percent after its non-performing assets showed signs of deterioration.
by RTT Staff Writer
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