Mumbai: The 30-share BSE Sensex fell more than 100 points on Monday as the market seems worried about monsoon, though the inflation eased in June compared to previous month.
The BSE benchmark was completely rangebound around its Friday's closing value since early trade, but it extended losses in last one hour of trade. Index fell 110.39 points to close at 17,103.31. Meanwhile, the NSE benchmark dropped below the 5200 to 5,197.25, down 30 points.
Met Department says monsoon may miss forecast in July and may be deficient in September. It said that the El Nino effect, a phenomenon that causes temperature variations, may emerge in August and September.
Ambareesh Baliga, COO, Way2Wealth says the inflation surely was slightly better than expectations, but all eyes are more on monsoon than the immediate inflation figures. "In case we have the monsoon still playing truant over the next two to three weeks then I suppose we are staring at difficult situation and that will make the inflation shoot up in the coming months," he reasoned.
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