The BSE Sensex slid for the eighth straight session, the longest losing spell in at least two-and-a-half years, closing 0.4 per cent lower on Wednesday
"At current levels, most negatives - other than a likely fuel price hike, if it happens - are in the price," said Arun Kejriwal, director of research firm KRIS. "The market may stay flat for a while and hover in a narrow band, until there is a solid trigger to lift it up."
High fuel and commodity prices will keep troublesome inflation levels elevated, while the RBI will raise interest rates more aggressively than economists expected just three months ago, a Reuters poll showed.
The central bank raised interest rates by a sharper-than-expected 50 basis points on Tuesday and said fighting inflation was its top priority, even at the expense of short-term growth.
Financials closed mixed, while IT companies declined on worries over peer Cognizant Technology Solutions Corp's slowing growth rate.
Top motorcycle maker Hero Honda dropped 3.5 per cent after it posted a 16.5 per cent fall in quarterly profit, its fourth consecutive quarterly decline, due to higher advertising spend during the cricket World Cup and rising input costs.
Foreign funds have been net buyers of more than $3 billion of Indian stocks since the start of March.
However, they have sold Indian equities in five out of the last six sessions to May 2, leading to concerns they were cautious about investing in Indian stocks, and that this could turn into a short-term trend.
Mortgage lender Housing Development Finance Corp and top private lender ICICI Bank slid 3.2 per cent and nearly 1 per cent, respectively.
Leading lender State Bank of India and private lender HDFC Bank gained 1.2 per cent each.
Leading software companies Tata Consultancy Services and Infosys Technologies and Wipro declined 0.1 per cent and 1.4 per cent, respectively.
Oil and Natural Gas Corp advanced 5.3 per cent after Bloomberg reported the energy explorer is in talks to acquire oil sands reserves in Canada and may increase its investments in Kazakhstan to help offset declining production.
An ONGC spokeswoman could not be reached for a comment by Reuters.
Auto stocks suffered a double whammy as they digested the interest rate increase, while already grappling with slowing sales growth.
Tata Motors, Maruti Suzuki, Bajaj Auto and Mahindra & Mahindra declined between 0.3 per cent and 4.7 per cent.
The MSCI world equity index and the Thomson Reuters global stock index were down 0.2 per cent each by 1021 GMT.
Stocks That Moved
# Thermax fell 4.2 per cent to 613.30 rupees after its managing director said the company's margins won't improve in fiscal 2012 but the capital goods maker would try to retain them.
# Sun Pharma Advanced Research Co Ltd gained 1.2 per cent to 84.15 rupees after the unit of Sun Pharmaceutical Industries said it had received approval from the US Food and Drug Administration for its cancer treatment Docefrez injection.
Top Three By Volume on NSE
# Unitech on 25.2 million shares
# Jaiprakash Associates on 20.4 million shares
# Suzlon Energy on 17.5 million shares
Mortgage lender Housing Development Finance Corp and top private lender ICICI Bank slid 3.2 per cent and nearly 1 per cent, respectively.
Leading lender State Bank of India and private lender HDFC Bank gained 1.2 per cent each.
Leading software companies Tata Consultancy Services and Infosys Technologies and Wipro declined 0.1 per cent and 1.4 per cent, respectively.
Oil and Natural Gas Corp advanced 5.3 per cent after Bloomberg reported the energy explorer is in talks to acquire oil sands reserves in Canada and may increase its investments in Kazakhstan to help offset declining production.
An ONGC spokeswoman could not be reached for a comment by Reuters.
Auto stocks suffered a double whammy as they digested the interest rate increase, while already grappling with slowing sales growth.
Tata Motors, Maruti Suzuki, Bajaj Auto and Mahindra & Mahindra declined between 0.3 per cent and 4.7 per cent.
The MSCI world equity index and the Thomson Reuters global stock index were down 0.2 per cent each by 1021 GMT.
Stocks That Moved
# Thermax fell 4.2 per cent to 613.30 rupees after its managing director said the company's margins won't improve in fiscal 2012 but the capital goods maker would try to retain them.
# Sun Pharma Advanced Research Co Ltd gained 1.2 per cent to 84.15 rupees after the unit of Sun Pharmaceutical Industries said it had received approval from the US Food and Drug Administration for its cancer treatment Docefrez injection.
Top Three By Volume on NSE
# Unitech on 25.2 million shares
# Jaiprakash Associates on 20.4 million shares
# Suzlon Energy on 17.5 million shares
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