CPI data helps narrow stock market losses

Mumbai

The Indian equity markets continued to witness selling pressure on Tuesday but the losses narrowed compared with the previous session, owing to better than expected CPI data released on Monday.

The S&P BSE Sensex lost 153 points, or 0.29%, to 52,693.57. Stocks that lost the most included IndusInd Bank (2.37%), Tech Mahindra (2.08%), Reliance (1.33%), HDFC Bank (1.24%), HDFC (1.23%) and HUL (1.08%).

The NSE Nifty 50 index too lost 42.3 points, or 0.27%, to 15,732.1.

“The domestic market [was] restrained from heavy sell-off as CPI data moderated on month-on-month basis and this had a calm-down effect amidst global volatility,” said Vinod Nair, head of Research at Geojit Financial Services.

“However, elevated WPI data continued to dominate the broad market, which is cautious, awaiting Wednesday’s outcome of Fed policy. Earlier, the global market was anticipating a 50 bps hike but now is worried about a higher rate hike due to persistent U.S. inflation,” he added.

The Indian rupee also remained under pressure and closed slightly stronger than Monday’s close, which was its historic low.

Sugandha Sachdeva, vice president, Commodity and Currency Research, Religare Broking Ltd. said the Indian rupee had been on a downward since the beginning of the year and had depreciated about 5% so far in 2022.