Nifty fall as November inflation print remains above RBI target

BENGALURU, Dec 15 (Reuters) – Indian shares fell on Tuesday after data showed the country’s retail inflation print for November was above the upper limit of the central bank’s recommended 2%-6% target.

Investors’ sentiment was also dampened by losses in broader Asian markets as increasing COVID-19 deaths and restrictions overshadowed vaccine-related enthusiasm. MKTS/GLOB

By 0355 GMT, the blue-chip NSE Nifty 50 index fell 0.26% to 13,522.55 and the benchmark S&P BSE Sensex slid 0.29% to 46,120.44.

Both the indexes scaled all-time highs in 16 of the past 24 sessions, boosted by record inflows from foreign institutional investors and progress on COVID-19 vaccines globally.

Government data on Monday showed November’s annual retail inflation eased to 6.93% after holding above 7% for two straight months. However, the elevated print leaves little scope for the Reserve Bank of India to cut rates. Bank and conglomerate Reliance Industries fell 0.8% and 0.6%, respectively, and were among the top drags to the Nifty 50.

Kotak Mahindra Bank was among the top boosts to the Nifty 50, rising 0.3%, after the bank on Monday said https:// the central bank had approved the re-appointment of Uday Kotak as managing director and chief executive officer.