Sensex falls ahead of inflation data, Fed meet

Inflation in India is expected to have cooled to a new record low of 2.60 percent in May, a Reuters poll found.

Published: 12th June 2017 02:38 PM  |   Last Updated: 12th June 2017 02:38 PM   |  A+A-

Sensex | REUTERS

By Reuters

Shares fell on Monday as investors booked profits in recent outperformers including lenders ahead of inflation data due later in the day, while sentiment was cautious ahead of the U.S. Federal Reserve policy meeting this week.

Inflation in India is expected to have cooled to a new record low of 2.60 percent in May, a Reuters poll found, which could add pressure on the Reserve Bank of India to cut interest rates later in the year.

Asian markets were also lower - with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.8 percent - as shares of electronic products makers fell on caution ahead of the Fed, which is expected to raise rates and signal further increases this year.

"The market has been moving up for quite sometime and it needs to consolidate," said Arun Kejriwal, founder of Kejriwal Research & Investment Services, adding that the fall in banking and IT stocks was owing to profit booking.

The broader NSE Nifty was down 0.51 percent at 9618.55 as of 0643 GMT, while the benchmark BSE Sensex was 0.53 percent lower at 31096.40.

Banking stocks fell as sentiment took a hit after India's western state of Maharashtra agreed on Sunday to write off all loans availed by farmers.

Nifty PSU bank index dropped as much as 1.34 percent, with all its members trading lower, and recorded its biggest intraday percent loss since May 29, while the Nifty Bank index slipped as much as 0.62 percent.

The Nifty IT index fell as much as 1.23 percent, with Wipro Ltd losing as much as 3.04 percent to its lowest in over two weeks.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp