The Sensex and Nifty opened in the red on Tuesday for a second straight session, ahead of domestic and US inflation data due later in the day. Investors are focusing on the earnings season for cues on the impact of a price surge on companies.
The NSE Nifty 50 index was down 0.78 per cent or 138.25 points at 17,536.70, while the S&P BSE Sensex fell 0.67 per cent or 397.37 points to 58,567.20.
Shares of IT behemoth Tata Consultancy Services (TCS) rose 0.5 per cent after the company reported higher profit on Monday due to large deal signings. TCS kick-started the Indian earnings season.
India’s retail inflation likely sped up to a 16-month high of 6.35 per cent in March, well above the Reserve Bank of India’s upper tolerance band for a third straight month, in part due to a sustained rise in food prices, a Reuters poll found.
Meanwhile, Asian shares slid and the US dollar held strong, as Treasury yields spiked to a three-year high ahead of U.S. inflation data which could foreshadow even more aggressive interest rate hikes from the Federal Reserve.