Sensex ends down 28 points; retail inflation dents rate cut hopes

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Mumbai:The Sensex and the Nifty fell on Tuesday after worse-than-expected retail inflation data dented hopes of an interest rate cut by the central bank next month, while Tata Motors declined on continued worries over slowing sales in China. Higher food prices pushed India’s retail inflation to an eight-month high in June, government data released on Monday showed, raising concerns that the Reserve Bank of India would have no leeway to cut rates at its policy review in August.

Meanwhile, wholesale prices fell at a faster-than-expected annual rate of 2.4 per cent in June, their eighth straight decline, government data released on Tuesday showed. The Sensex ended down 28.29 points or 0.10 per cent at 27,932.90 while the Nifty finished 5.55 points lower at 8,454.10.
European stocks edged lower on Tuesday after a strong four day rally, with investors unsure whether Greece would be able to get the support of its parliament behind a bailout deal designed to avert bankruptcy.China’s main indexes eased early on Tuesday hit by selling in blue chips, but small caps extended their rebound as hundreds of companies resumed trading after recent suspensions. Hong Kong shares also weakened, dragged lower by listed mainland companies.Japan’s Nikkei was up by 1.4 per cent.

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