Sensex Drops 509 Points Before Retail Inflation Data, and Nifty Climbs Below 16,100

Investors awaited the publication of the retail inflation data later in the day as Indian equity benchmarks continued to decline on Tuesday for the second straight session.

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As investors awaited the publication of the retail inflation data later in the day, Indian share indices fell for the second straight session on Tuesday. For the sixth month in a row, it’s anticipated that the inflation print would remain above the Reserve Bank of India’s (RBI) upper tolerance range of 6%.

The U.S. consumer price index (CPI) figure, which is coming on Wednesday, caused a decline in U.S. stock futures on the international front. An increase in the inflation rate points to a more aggressive tightening of monetary policy from the central banks.

Additionally, Covid-19-led shutdowns in numerous Chinese cities contributed to sluggish Asian financial markets.

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The 30-share BSE Sensex dropped 509 points or 0.94 percent to end the day at 53,887 at home, while the larger NSE Nifty dropped 158 points or 0.97 percent to conclude at 16,058.

The Nifty Midcap 100 and Small-Cap dropped 0.45% and 0.42 percent, respectively, as mid- and small-cap shares ended on a shaky note.

The National Stock Exchange’s compilation of 15 sector gauges, 14 of which reached negative closing values. NSE platform underperformed by 1.18 percent, 1.16 percent, 1.22 percent, and 1.14 percent for the sub-indices Nifty Auto, Nifty IT, Nifty Metal, and Nifty FMCG.

Nifty Realty, on the other hand, grew by 0.10 percent.

In terms of individual stocks, Eicher Motors was the biggest loser on the Nifty, with the stock falling 3.34 percent to 2,945.15. Grasim Industries, Infosys, BPCL, and Hindalco were all among the backward companies.

1,481 shares on the BSE climbed while 1,816 fell, resulting in a negative market breadth overall.

Information Systems, Nestle India, HCL Technology, PowerGrid, Hindustan Unilever, M&M, Kotak Mahindra Bank, Asian Paints, IndusInd Bank, Titan, UltraTech Cement, and ICICI Bank were among the biggest losses on the 30-share BSE index, with their shares falling as high as 2.33 percent.

Additionally, shares of Life Insurance Corporation of India (LIC), the largest domestic financial investor and insurer in the nation, declined 0.15 percent to close at 717.30 rupees.

NTPC, Bharti Airtel, and Bajaj Finance, on the other hand, achieved a profit.