MUMBAI: Equities were witnessing selling pressure Monday as profit booking intensified in rate sensitives following higher-than-expected rise in inflation.
Inflation rose 8.56 per cent in January against 7.3 per cent in December. The wholesale price index which was highest since November 2008 beat analyst forecast of 8.2 per cent. There are concerns that rising inflation would push the Reserve Bank of India to hike interest rates.

Bombay Stock Exchange’s Sensex was at 16028, down 124.59 points or 0.77 per cent. The index touched an intraday high of 16227.04 and low of 16017.19.

National Stock Exchange’s Nifty was at 4789.80, down 37.05 points or 0.77 per cent. The broader index hit a low of 4783.95 and high of 4845.60.

“Indices are likely to face resistance at the 16350-16500-16650/4850-4880-4900 levels. Any surge in the indices may see profit taking around the indicated resistances. Downside supports are placed at the 16000-15800-15650/4800-4750-4650 levels. Depending on the global cues we expect to see slight recovery from the mentioned supports and the trades could be influenced by strong moves sectorally.

Any move until the above mentioned resistances shall be utilized to exit from long positions and look out for a sustainable move. However, looking at the broader scenario we advise investors to play the broad range movement with caution and strict stop losses,” said Karvy Stock Broking note.

BSE Midcap Index was down 0.43 per cent and BSE Smallcap Index moved 0.03 per cent lower.

All the sectoral indices slipped in the red. BSE Realty Index fell 1.14 per cent, BSE Bankex moved 0.90 per cent and BSE FMCG declined 0.55 per cent.

The decline on the Nifty was led by Bharti Airtel (-5.90%), Sterlite Industries (-3.19%), Reliance COMmunications (-2.51%), SAIL (-2.24%) and Reliance Capital (-1.89%).

HCL Tech (2.61%), BHEL (1.36%), IDFC (1.20%), Cipla (0.98%) and Hero Honda (0.60%) bucked the trend.

Bharti Group chairman Sunil Mittal’s dreams of taking the Indian telecom business model global has finally become a reality with the Indian operator buying out the Kuwait-based telco’s African assets. The board of Kuwait’s Zain Telecom has accepted $10.7 billion (Rs 49700 crore) offer from Bharti Airtel for the bulks of its African assets.