Sensex, Nifty End Marginally Lower As Investors Eye US Inflation Data

(RTTNews) – Indian shares ended a choppy session marginally lower on Wednesday, with a declining dollar and easing Treasury yields helping cap the downside.

A cautious undertone prevailed as investors awaited the release of U.S. inflation data on Thursday for additional clues on the rate outlook.

It is believed that cooling inflation and a slowing economy may convince the U.S. Federal Reserve to ease its tightening of monetary policy.

Fed Chair Jerome Powell didn’t directly comment on the economic or monetary policy outlook at a forum in Stockholm on Tuesday, but he did say that “restoring price stability when inflation is high can require measures that are not popular in the short term.”

Separately, Fed Governor Michelle Bowman said she expects more interest rate increases ahead to achieve a sufficiently restrictive federal funds rate and keep it at that level for some time.

The benchmark S&P BSE Sensex fell over 300 points in initial trade before recovering most losses to end the session down 9.98 points, or 0.02 percent, at 60,105.50.

The broader Nifty index also pared losses, closing down 18.45 points, or 0.1 percent, at 17,895.70 on the back of sustained FII selling.

Telecom major Bharti Airtel fell 3.5 percent to extend Tuesday’s losses, while Hindustan Unilever, Apollo Hospitals Enterprise, Divis Laboratories and Cipla lost 2-3 percent.

Hindalco topped the gainers list to close 2.8 percent higher as commodity prices surged on China reopening optimism.

The rupee hit a more-than-one-month high of 81.59 against the dollar today, after rising sharply to reach the key 82 level in the previous session.

Oil prices were moving higher for a fifth straight session in European trade despite lingering demand concerns and rising economic uncertainties.