Sensex erases early gains on rise in food inflation
Erasing initial gains, the BSE benchmark Sensex fell over 93 points at mid session today on funds selling, geared by a marginal hike in food inflation, amid revision in key interest rates by the Reserve Bank of India (RBI).
The Bombay Stock Exchange benchmark Sensex, which rose 117 points at the outset, fell 93.77 points to 18,875.68 at 1230 hrs following reports that the food inflation up marginally to 15.57% for the week ended January 15, from 15.52% in the previous week.
The gauge had lost 182 points in the previous session after the RBI increased interest rates for the seventh time since March 2010 and boosted its inflation forecast.
The apex bank had also raised the inflation forecast to 7.0% by March 31, more than its earlier prediction of 5.5%, as food costs soared.
Similarly, the broad-based National Stock Exchange index Nifty fell by 27.20 points to 5,660.20 at the same time with stocks in healthcare, realty and metal sector recorded fresh losses.