Money on the markets
A maturing market amid the mayhem
The BSE Sensex fell for the second consecutive day and ended 1.59 percent down on Thursday as an unexpected fall in industrial output data for December added to concerns over a deteriorating global economic outlook.
Industrial output data fell 2 percent in December from a year earlier, the second fall in three months — further evidence of falling demand at home and abroad. In this scenario, more rate cuts by the RBI cannot be ruled out.
There was some respite as inflation fell to 4.39 percent at the end of January; the lowest in just over a year. Economists expect inflation to continue to fall for some time.
Bears ruled the day as the Sensex slipped 2.4 percent to close at 9,100 levels. Fears that a deepening global economic crisis would trigger funds outflow weighed on sentiments as investors waited for cues form U.S. President-elect Barack Obama’s inaugural speech.
Index heavyweights Reliance Industries, Bharti Airtel and ICICI led the fall. Financial stocks took a beating after a record loss by Britain’s RBS.