The market topped the key 33,000 level multiple times on Tuesday, but closed below that threshold after rising inflation numbers squeezed the headroom for an interest rate cut at RBI’s policy review next month.
Inflation at the wholesale level raced to a 6-month high of 3.59 per cent in October, fuelled by food articles, data released on Tuesday showed.
Retail or CPI inflation, which came in on Monday, had jumped to a 7-month high of 3.58 per cent in October.
Not sure which way to move, the Sensex changed its course many a time during the day, before it settled at 32,941.87 -- a three-week low, down 91.69 points, or 0.28 per cent. The index had a fall of 281 points on Monday.
The broader 50-share NSE Nifty met with the same fate, dropping 38.35 points, or 0.38 per cent, to close at 10,186.60 after shutting between 10,248 and 10,175.55.
“Rise in inflation numbers and weakness in Asian peers blunted the expectations of a recovery and domestic market remained range-bound. Persistent weakness in the rupee also weighed down investors’ sentiment,” said Anand James, Chief Market Strategist, Geojit Financial Services.