Sensex falls in early trade ahead of inflation data

The BSE Sensex opened up 0.3 percent and then turned negative on Wednesday, ahead of inflation data and tracking subdued Asian markets as investors await signs of progress on resolving the euro zone debt crisis.

The August inflation data will be released around 12 p.m, which should provide cues on the central bank’s scheduled rate decision on Friday.

At 9:17 am (0347 GMT), the 30-share BSE index was down 0.2 percent at 16,450.10 points, with 18 of its components losing, after having risen to a high of 16,529.69 in the opening deals.

[caption id=“attachment_83534” align=“alignleft” width=“380” caption=“Reuters”]  [/caption]

The broader 50-share NSE index was down 0.1 percent at 4,938.

Capital goods, banking, power, oil and gas and metal stocks bore the brunt of the selling pressure, dragging down the stock market indices.

More from Fwire

BCCI earned more than Rs 2,400 crore in IPL 2022, reveal documents Eight Russian judokas barred from world championships after Ukraine boycott

Brokers said continued selling by funds and retail investors over concerns that the Reserve Bank of India may announce another hike in interest rates later this week was mainly responsible for the poor start on the bourses this morning.

They said concerns about the euro zone sovereign debt crisis also had a negative impact on the trading sentiment. Meanwhile, in the Asian region, Hong Kong’s Hang Seng Index rose by 0.96 per cent, while Japan’s Nikkei Index shed 0.20 percent in early trade today.

Agencies