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Sensex snaps two-day rise

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The benchmark index shrugged off lower-than-expected inflation figures and fell 1.21 percent on Thursday, as a slump in domestic demand and fresh concerns over the U.S. economy took a toll on investor sentiment.

The Sensex closed 110.97 points down at 9,090.88, snapping a two-day rise. Losses were led by Reliance Industries, which fell 1.6 percent to 1286.75, and HDFC which dropped 3.6 percent.

Many banks fell as talks of more rate cuts by the RBI were seen as hurting profit margins. Top lender SBI shed 0.3 percent, HDFC Bank fell 1.4 percent, while ICICI Bank reversed early losses to end 0.4 percent up.

The Autos Index saw most of the selling pressure as it ended 1.98 percent down. Many automobile companies are facing falling sales as consumers are now spending less. TVS Motor, Tata Motors, Maruti Suzuki, Mahindra & Mahindra were down in the range 2 percent to 5 percent. Tata Motors slipped 2.8 pct, after falling as much as 5.3 percent during trade, on reports that payments to vendors would be delayed.

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