Sensex and Nifty plummeted as FPIs sold off, influenced by US inflation and tweak in India-Mauritius tax treaty. Investors are also cautious on valuations, profit booking, and rising commodities prices. EPS growth is likely to moderate in Q4 earnings season which begins today with TCS.
Benchmark equity indices closed lower as investors turned cautious ahead of key domestic and US inflation data. Power Grid Corp, Tata Steel, SBI, IndusInd Bank, NTPC, HDFC Bank declined, while Nestle India, Bajaj Finserv, Asian Paints, Tech Mahindra closed with gains. Market capitalisation declined. Global stock indexes also fell.
Price growth dropped to an annual rate of 3.1% in January, according to official data; above economists expectations of 2.9%. In December, the consumer price index stood at 3.4%.