BENGALURU (Reuters) – Indian shares fell on Tuesday after data showed retail inflation touched its highest level in eight months, further dimming chances of interest rate cuts by the central bank to boost economic recovery.
India’s retail inflation picked up in September to 7.34%, as food prices surged ahead of the festival season. That was higher than the forecast of 6.88% in a Reuters’s poll of economists and the previous month’s 6.69%
The NSE Nifty 50 index fell 0.21% to 11,906.35 as of 0345 GMT, while the S&P BSE Sensex was down 0.17% at 40,523.33. As of Monday’s close, both indexes had gained for eight straight sessions.
Shares of the country’s third largest IT services provider Wipro Ltd, which will report results later in the day and give details on a buyback plan, fell 0.33%.
The Nifty Bank index was down 0.9% ahead of a top court hearing on waiving interest on loans under moratorium.
Reporting by Philip George in Bengaluru; Editing by Arun Koyyur