Sensex pares early gains as inflation rises
Mumbai: The Bombay Stock Exchange benchmark
Sensex pared early gains and lost 78 points at midsession
on Thursday due to selling by funds on fears that RBI may tighten
money supply to stem the food inflation, which has risen to
over 17 percent.
The 30-share index fell by 77.98 points at 16,211.87 points soon after the food inflation data released. The barometer had gained nearly 235 points in early trade.
The National Stock Exchange index Nifty fell by 7.25 points to 4,845.85 points with FMCG, capital goods, consumer durable stocks recording heavy losses.
Food inflation rose to 17.40 percent for the week ended January 16 from 16.81 percent in the previous week, an official data released today showed.
The Reserve Bank in its monetary policy review tomorrow may hike cash reserve ratio -- the amount of deposits banks park with the apex bank -- and key policy rates to check the surging prices.