Sensex, Rupee slip amid pandemic fears as inflation surges in March

Household goods and services inflation hit a 10-month high while recreation and amusement services touched a 9-month high.

The BSE Sensex tanked 1708 points or 3.44% driven by the fear of fresh pandemic effects, taking the Rupee past the ₹75 mark against the dollar on a manic Monday for the economy, even as inflation surged further in March and industrial output collapsed sharply in February as per official data. India’s retail inflation accelerated to 5.52% in March 2021 from 5.03% in February, with urban areas recording a high 6.52% inflation. The Consumer Food Price Index hardened to 4.94% from 3.87% in February, with urban India seeing a much higher surge of 6.64% in food inflation. Industrial output, meanwhile, fell for the second successive month in February, contracting by 3.6%, suggesting that the recovery is still shaky, economists said.