Commodity Online
MUMBAI: As inflation hits its lowest levels, the markets started tumbling with FMCG sector taking a lead. The BSE sectoral index fell by close to 1% to 1906.24 leading the Sensex down by over 100 points from its day’s high in the morning trading session today.

Hindustan Uniliver Ltd, which has surged by close to 8% during past one week, plunged by close to 3% to Rs.226 soon after the inflation data, released by the government in the afternoon today. FMCG Major, Marico Ltd witnessed a fall of 3.39% to Rs.59.80, while ITC Ltd fell by 0.56% to Rs.168.50 on the BSE. Dabur India Ltd too witnessed a fall of over 1% to Rs.93.20 in the afternoon trading sessions. 

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Investors started profit booking for cash gains, which added to the negative sentiments created on the fears of a possible deflation.

The WPI for food articles was down by 1% to 245.5. However, analysts ruled out the possibility of a deflationary situation as according to them, the fall in the prices was mainly attributed to the base effect.

The agriculture commodities remained a mixed bag, as the prices of coffee and barley were found to be on decline, while the prices of sugar, liquid milk and wheat continued to stay firm.