New Delhi, May 31: Traders are focusing on the comment of Reserve Bank of India (RBI) governor D Subbarao over high inflation and concern over the current account gap dented rate cut ropes as GDP data for the March quarter failed to lift sentiments on the Street on Friday.
The Nifty traded 80 points lower at 6,044 while the BSE Sensex traded 255 points or 1.3 per cent lower at 19,960. The rupee, which hit an 11-month low of 56.60, traded at 56.51 as of 11.16 a.m.
On Friday, Government data shows that India’s economy grew 5% in 2012-13, its lowest rate in a decade and in line with an official estimate. Gross Domestic Product grew at 4.8 per cent in the quarter ending March 31, the date showed, in line with a poll of analysts by Reuters. The manufacturing sector grew an annual 2.6 per cent during the quarter while farm output rose just 1.4 percent, the data showed.
Rate sensitive stocks saw strong selling pressure, led by the Bank Nifty, which fell over 1.5 per cent. Index heavyweights – ITC and Reliance – traded with deep cuts weighing on markets.
Market analyst Rajat Bose said this kind of fall in rupee suggests more weakness coming in equity markets too and investors should get out of stocks.