Mumbai: Dragged by interest-rate sensitive sectors, the Sensex on Thursday fell to a six-week low by dropping over 206 points amid concerns that RBI may keep interest rates unchanged at its policy review next week and tepid earnings of ITC.
The BSE benchmark index, which had lost 72 points in the previous session, opened marginally higher but shares in capital goods, PSU, banks, FMCG and IT faced selling pressure throughout the session. The Sensex fell by 206.23 points, or 1.22 percent to 16,639.82, a level last seen on June 7.
Led by Tata Motors which fell close to 4 percent, 22 stocks including Tata Power, Wipro, Sterlite and SBI closed with losses in the 30-share index.
Shares of ITC, closed 2 percent down, after its first quarter revenue at Rs 6,652 crore could not beat expectations.
On similar lines, the 50-share National Stock Exchange index Nifty lost 66.60 points, or 1.30 percent to 5,043 with most of the interest-related sectors ending lower.
Fears of rising inflation, driven by possible hikes in fuel and commodity prices have raised fresh concerns that the Reserve Bank of India might keep rates unchanged on July 31 even as rains continue to be poor, they added.
"Deficient monsoon witnessed in the country is continuously putting pressure on the upside," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.
The BSE Realty sector suffered the most damage today by losing 3.07 percent with DLF falling 2.85 percent while Parsvnath Developers tanked 20 percent. The capital goods sector fell over 2 percent with Bhel and L&T dropping close to 2 percent each.
Experts also said June quarter earnings have been tepid and that is another reason for FIIs selling stocks for the last 2-3 days. IT majors Infosys, TCS and Wipro fell on concerns the deepening Eurozone debt crisis might hurt IT services demand.


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