Sensex at 843.39 points on inflation concern in the week

Mumbai, June 7: The Sensex tanked 843.39 points or 6.07 per cent, while Nifty plunged by 242.3 points or about 5 per cent on fuel price hike stoke surge in inflation rate in the week ended June 5, 2008. The key indices of Indian bourses fell sharply, on the heightening worries over rise in annual inflation rate after substantial price hike in fuel prices, by about 10 per cent announced by the Union government on June 4, marketmen said.

The BSE Midcap index fell by 410.39 points or 6.07 per cent to 6,350.15 and Smallcap tumbled by 437 points or 5.37 per cent to 7,696.05. The government had raised petrol price by Rs 5 per litre, diesel price by Rs 3 per litre and domestic LPG by Rs 50 per cylinder, in an attempt to curb mounting losses of state-owned refiners, thereby stoping inflation. The wholesale price index-based inflation surged up to 8.24 per cent for the week ended May 23, from 8.1 per cent, in the previous week, government data released on Friday showed.

The reading was the highest since August 2008, 2004, when it stood at 8.74 per cent. Inflation for the week ended March 30, 2008 was revised upwards to 7.75 per cent from 7.41 per cent. Reliance Industries slipped by 6.76 per cent to Rs 2,239.35 and ICICI Bank fell by 2.21 per cent to Rs 770.85. However, Oil and Natural Gas Corporation (ONGC) surged by 8.58 per cent to Rs 938.50, on fuel price hike in the week.

Suzlon Energy rose by 1.06 per cent to Rs 280.20. The firm said it signed a share purchase agreement with Areva for acquisition of the latter's total stake of approximately 30 per cent in REpower Systems AG, Germany. This acquisition will consolidate Suzlon's total holdings in REpower to around 66 per cent, the company said in a statement to the exchange on Friday.

Private carrier, Spicejet surged by 10.62 per cent to Rs 35.95. Anil Dhirubhai Ambani Group is reportedly planning to acquire the Gurgaon-based small-cap low-fare carrier.

Foreign institutional investors (FIIs) sold shares worth Rs 3,291.20 crore so far in the month of June 2008. They sold shares worth Rs 18,660.60 crore in calendar year 2008, till June 5. Domestic funds sold shares worth Rs 144.20 crore in the month.

UNI