Nifty ended flat on Monday as investors awaited India's consumer price inflation (CPI), or retail inflation, prints for the month of July which is expected to see an uptick because of the recent rise in vegetables, pulses and cereals prices. A sharp uptick in inflation may weigh on market sentiment which already appears to be in a consolidation phase. Sensex and Nifty are about two per cent down in August so far.
Meanwhile, India's wholesale price index remained in deflationary territory for the fourth consecutive month in July. The wholesale price index-based inflation saw a 1.36% contraction in July, according to data released by the commerce and industry ministry on Monday. WPI inflation contracted 4.12% in June and 3.48% in May.
The WPI-based inflation stood at 13.93% in July 2022. Read more: WPI inflation at -1.36% in July, stays in negative for the fourth consecutive month Mixed global cues failed to dispel the cautious mood. Rising US dollar and treasury yields drove investors away from riskier equities.
"The dollar hit a one-month high against a basket of major currencies, before steadying, as investors sought a safe haven on concerns about China's economy," reported Reuters. "Analysts said investors were buying the safe-haven greenback over concerns about the health of the global economy, particularly China. They also pointed to a recent rise in U.S.
bond yields on the back of persistent strength in the country's economy," the report further added. Sensex opened 170 points lower at 65,153.02 against the previous close of 65,322.65. The index fell 501 points during the session to hit the intraday low of 64,821.88.
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