Sensex continues losing streak; declines 126 points

MUMBAI: Falling for the fifth straight day, the BSE benchmark Sensex today closed 126 points down on sustained selling by investors ahead of wholesale inflation data amid a weakening trend in the European region.

Extending its previous four sessions loss of 132 points, the gauge dropped 0.65 per cent to close at 19,229.26 points.

The 30-share index touched the day's high of 19,421.72. Similarly, the broad-based 50-stock Nifty of NSE lost 36.50 points, or 0.62 per cent, to 5,851.50, after touching a high of 5,907.45.

Brokers said the cautious investors indulged in selling over concern that any further fall in inflation data might fade chances of the Reserve Bank of India to cut interest rate in its mid-quarter policy review on December 18.

WPI-based inflation data will be announced tomorrow. Traders said a weakening trend in the euro zone after the US Federal Reserve announced new measures to support the world's largest economy, further dampened the investor confidence.

Selling pressure was wide-based as all sectoral indices, barring auto and refinery, closed with losses up to 2.73 per cent.

Infosys led the fall in the software sector by losing 0.69 per cent to Rs 2,283 over concern that dim situations on the global front might hurt revenues.

ITC Ltd, also a prominent member of the index, tumbled by 3.55 per cent to Rs 295 after FTSE global equity index series cut the stock's "investability" weight to 24 per cent from 75 per cent.

The consumer durable sector index suffered the most by losing 2.73 per cent to 7,862.13 followed by FMCG index by 2.64 per cent to 5,970.55. Realty index fell by 1.62 per cent to 2,046.54.