Sensex Opens Lower As Inflation Spikes; Banking Stocks Dip

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Benchmark indices opened the day lower as hopes of a rate cut were dashed after inflation came in higher than expected.

Sensex Opens Lower As Inflation Spikes; Banking Stocks Dip
Indices
Sensex26,230.66Sensex Quote-329.26 [1.24%]
Nifty8,086.80Nifty Quote-106.10 [1.30%]
The Sensex was trading with losses of 50 points, while the Nifty was down 15 points and trading at 8444 points. On Monday, CPI inflation came in much higher than expected at 5.40 per cent for the month of June. This has dashed expectations of any interest rate cut from the RBI, whose officials are slated to meet in August.

Banking stocks fell on the inflation data with ICICI Bank and Axis Bank among the early losers. HDFC, Tata Motors and Zee were the stocks that added early pressure on the Nifty.

IT stocks were also the laggards in trade with TCS, Infosys, HCL Tech and Wipro among the early losers.

Shares in IndusInd Bank rallied following a good set of results. A host of brokerages have upgraded the stock to a buy.

SUN TV also saw good buying interest on hopes the company's license would be approved by the government. News reports suggested that the license issue maybe taken up today.

Shares in Dr Reddy's Laboratories was trading higher after the company launched memantine hydrochloride tablets in the US markets.

Meanwhile, markets across Asia were trading higher led by gains in the Japanese Nikkei and the Taiwan Weighted.

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