BSE Sensex falls for eighth day; financials decline

Mumbai, February 11, 2013: The BSE Sensex fell on Monday for an eighth consecutive session, marking their longest losing streak since May 2011 as ONGC retreated ahead of quarterly results, while financial stocks fell after the central bank governor said inflation was "still high."

Reserve Bank of India Governor D Subbarao reiterated his warning ahead of the January wholesale price index data, due on Thursday, reinforcing market worries inflation remains sticky even as economic growth has sharly slowed down.

Trading was light and choppy as the Lunar New Year holiday shut most Asian financial centres, including those in Japan, China, Hong Kong, Singapore and South Korea.

Domestic shares are expected to retain their weak tone in the lead-up to the 2013/14 budget to be unveiled on February 28, after indexes had rallied last year.

The Sensex fell 0.12 percent, or 24.20 points, to end at 19,460.57, its lowest close since December 31 and its longest losing streak since a nine-session fall in May 2011.

The broader Nifty fell 0.1 percent, or 5.65 points, to end at 5,897.85, closing below the psychologically important 5,900 level, for the first time since December 27, 2011.

The country's new stock exchange MCX-SX started trading shares on Monday with thin volumes, taking up a steep challenge to build liquidity and win market share against dominant player National Stock Exchange (NSE) and the smaller and older BSE Ltd.

At Monday's close, the value of shares traded on the MCX-SX was 6.9 million rupees, its website showed, compared to 94.