Stock indices in India continued to remain in red throughout Thursday’s session.
Sensex closed at 81,263.84 points, down 262.30 points or 0.32 per cent, while Nifty closed at 24,538.85 points, down 102.95 points or 0.42 per cent.
Indian stock markets opened flat as consolidation continued.
“The market continued to remain range-bound ahead of domestic CPI data and a weakening rupee. Though inflation is anticipated to drop, investors are maintaining a close vigil on the vegetable prices, which will determine the future rate trajectory,” said Vinod Nair, Head of Research, Geojit Financial Services.
India’s retail inflation was at 6.21 per cent in October, breaching the Reserve Bank of India’s 6 per cent upper tolerance level. August retail inflation, at 3.65 per cent, was the second lowest in the last five years, and since then it has been rising.
Food prices continue to remain a pain point for the policymakers in India, who wish to bring retail inflation to 4 per cent on a sustainable basis.
Meanwhile, the Nifty IT index reached a new high after US inflation data met expectations, boosting hopes for a Fed rate cut next week, Vinod Nair added.
Going forward, all eyes will be on inflation data and commentary around it from the policymakers.
The latest rally in indices helped recover some of the recent losses, with indices gaining a few per cent over the past four sessions.
The Sensex remains nearly 4,500 points below its all-time high of 85,978 points. Recent bearish trends have been attributed to fund outflows, lower-than-expected Q2 earnings by India Inc., and persistently high inflation. (ANI)
