<p>The domestic equity benchmark indices were trading lower in the early deals on Friday on a <a href="https://www.mid-day.com/business/business-news/article/indias-retail-inflation-rises-to-609-per-cent-in-october-breaches-rbis-upper-limit-23659633" target="_blank" rel="none noopener">higher retail inflation print</a> that fuelled expectation of further RBI rate hike.</p>
<h2>CPI inflation rises in October</h2>
<p>Consumer Price Index (CPI) inflation rose to 6.09 per cent in October, breaching the Reserve Bank of India's upper tolerance limit for the first time in two years.</p>
<p>The 30-share BSE Sensex lost 177.89 points or 0.22 per cent at 81,733.12 in the initial trade. The 50-share NSE Nifty shed 93.75 points or 0.37 per cent at 25,205.60 in the early trade.</p>
<p>"With the October CPI inflation in India rising to 6.09 per cent, the RBI will have to raise rates at least by 25 bps each in December and February. These concerns along with the ongoing DII profit booking can apply brakes on the rally, in the near term," V K Vijayakumar, Chief Investment Strategist, Geojit Investments said.</p>
<h2>Gainers and laggards in early deals</h2>
<p>Among the 30 Sensex firms Sun Pharma, HCL Tech, Eternal, Hindustan Unilever, Tech Mahindra and Larsen and Toubro were the major gainers in early deals. Shares of Sun Pharma were trading 1.05 per cent higher, while HCL Tech stock gained 0.94 per cent.</p>
<p>HDFC Bank, Mahindra &amp; Mahindra, <a href="https://www.mid-day.com/business/business-news/article/state-bank-of-india-q1fy27-standalone-net-profit-rises-1023-per-cent-to-rs-2112122-crore-23643659" target="_blank" rel="none noopener">State Bank of India (SBI)</a>, Titan and Bajaj Finserv were among the major laggards in the initial deals. Shares of the country's largest private sector lender HDFC Bank were trading 1.26 per cent lower, while that of auto firm Mahindra &amp; Mahindra were quoting 1.25 per cent lower.&nbsp;</p>
<p>On Thursday, the Sensex gained 31.61 points, or 0.04 per cent, to settle at 81,911.01, while the Nifty climbed 44.30 points, or 0.18 per cent, to end at 25,299.35.</p>
<h2>Global cues</h2>
<p>Brent crude, the global oil benchmark, traded 0.44 per cent lower at USD 95.40 per barrel, according to news agency PTI.</p>
<p><a href="https://www.mid-day.com/business/business-news/article/market-weekly-round-up-fiis-continue-to-be-net-buyers-purchase-equities-worth-rs-45960-crore-23658950" target="_blank" rel="none noopener">Foreign Institutional Investors (FIIs)</a> were net purchasers and bought equities worth Rs 7,830.60 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) were net sellers and offloaded equities worth Rs 6,331.17.</p>
<p>"Indications are that the FII buying will continue taking the monthly inflows easily to above Rs 1 lakh crore, which will be a record high. With this kind of aggressive FII buying, the bears will be on the back foot. However, there are headwinds emerging that can spoil the party. Rising inflation in the US and India means a rising interest rate scenario which can turn out to be adverse for equity markets. In the US two rate hikes are likely in December and January," Vijayakumar added.</p>
<p>In Asian markets, South Korea's Kospi and Hong Kong's Hang Seng index traded lower, while Japan's Nikkei 225 index and Shanghai's SSE Composite index quoted in positive territory.</p>
<p><em><strong>(With inputs from PTI)</strong></em></p>

The Sensex dropped 177.89 points or 0.22 per cent at 81,733.12, while the Nifty slipped  93.75 points or 0.37 per cent at 25,205.60 in the initial trade

Sensex, Nifty fall in early trade on higher retail inflation print

Economists: Retail inflation may remain above 6 per cent for next few months

The 30-share BSE Sensex lost 177.89 points or 0.22 per cent at 81,733.12 in the initial trade. The 50-share NSE Nifty shed 93.75 points or 0.37 per cent at 25,205.60 in the early trade

Sensex, Nifty fall in early trade on higher CPI inflation; Sensex sheds 177.89 points

CPI inflation rises in October

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Home / Business / Stock Market / Article / Sensex, Nifty fall in early trade on higher CPI inflation; Sensex sheds 177.89 points