Drastic increase in India’s inflation
Mumbai: The sudden spike in wholesale price index-based inflation for November at 7.52 per cent numbed the stock market sentiment on the opening day of this week.
Both the S&P Bombay Stock Exchange Sensitive Index and the broader National Stock Exchange’s Nifty moved in a tight range.
The spurts are likely to be factored in by the Reserve Bank of India when it announces its credit and monetary policy.
Brokerages and analysts also have recommended risk-aversion until the Reserve Bank spells out its policy and gives some future guidance on the near-term market trend and movement of the partially convertible rupee.
The 30-stock Sensex closed 56.06 points or 0.27 per cent down at 20,659.52 points. The Nifty ended at 6,154.70 points, down 13.7 points or 0.22 per cent.
The BSE index moved in a cloistered band between 20,764.52 points on higher side and 20,637.77 points on lower side, which is a difference of 126.75 points.
Likewise, the Nifty also moved within a small range of 6,183.25 points and 6146.05 points.