NSE Nifty slides 28 pts on weak sentiment as rate cut hopes fade
Besides weakness across regional markets, a couple of macro data released today impacted the market. Optimism generated over a sharp rebound in industrial growth output was offset by rise in retail inflation for a fifth consecutive month, reducing pressure on the apex bank to slash key interest rates at its March 19 mid-quarter policy meeting.
The factory output grew by 2.4 per cent in January after declining in November and December last year, signalling that industrial growth has started bottoming out in Asia's -third largest economy.
Earlier, trading got off to a weak start ahead of the macro data and bearish Asian cues and the marker remained in a tight range in the absence of any firm trend.
The key index reacted positively to better-than- expected IIP numbers but the enthusiasm was short-lived after CPI inflation showed a rising trend, triggering heavy unwinding by investors.
However, a dramatic turnaround in later afternoon helped the key index to trade in positive zone for a brief period before slipping back into the red. The Nifty managed to regain some ground and closed above the 5,900 level.
Financials, technology, infra, pharma, oil and gas stocks witnessed heavy selling.
On the global front, the European markets were trading marginally lower after weak UK manufacturing data
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