Stocks slip as COVID-19 cases rise, inflation worries flare

Indian shares ended lower on Monday, as COVID-19 cases surged again and government data showed that retail inflation rose to a three-month high in February.

The NSE Nifty 50 index closed 0.67% lower at 14,929.50, while the benchmark S&P BSE Sensex ended down 0.78% at 50,395.08. Both indices fell as much as 1.9% and 1.96%, respectively, earlier in the session. India is grappling with a renewed surge in COVID-19 cases, led mainly by a jump in infections in Maharashtra. The country reported this year’s biggest daily rise in cases of 26,291 on Monday. India is the third-worst affected country with 11.39 million cases, behind the United States and Brazil. Government data after market hours on Friday showed retail inflation quickened to 5.03% in February on higher fuel prices, which could challenge the central bank’s accommodative stance. Core inflation was estimated in a range of 5.61%-5.9% by four economists.