With foreign investments bogged down by weak market sentiment globally, Sensex opened in the red at 57,526 after a 150 point drop, while Nifty fell below 17,100. While all stocks remained volatile, banking and IT lost while metal sector performed well.
Retail inflation remaining above RBI’s target for the third straight quarter is expected to push more aggressive rate hikes by the regulator. Combined with a drop in manufacturing, the price rise has subdued market sentiment.
The Rupee on the other hand has gained 2 paise to open at 82.31 against the US dollar.
International oil benchmark Brent crude was trading 0.04 per cent lower at USD 92.41 per barrel.
In Asian markets, bourses in Tokyo, Shanghai, Hong Kong and Seoul were trading with losses in mid-session deals. Equities on Wall Street ended significantly lower in the overnight session.
On the domestic macroeconomic front, headline CPI inflation surged to 7.4 per cent in September from 7 per cent in the previous month, official data released on Wednesday showed.
The Index of Industrial Production (IIP) declined 0.8 per cent in August with heavy rains dampening construction activity and electricity demand, and the bleak manufacturing output belying the hope generated by the robust GST e-way bill data.
