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Sensex, Nifty End Modestly Lower On Inflation Concerns

Indian shares fell modestly on Tuesday as rising crude prices as well as domestic data revealing upward pressure on both consumer and wholesale inflation helped spur worries over likely fiscal slippages.

India's consumer inflation quickened to 3.58 percent in October, the fastest pace in seven months, from 3.28 percent increase in September, a government report showed on Monday, adding pressure on the RBI to keep rates unchanged in the upcoming policy meeting in December.

Another report revealed today that the wholesale inflation rate touched a six-month high of 3.59 percent in the month as inflation in food articles more than doubled.

The benchmark BSE Sensex ended the session down 91.69 points or 0.28 percent at 32,941.87. The broader Nifty index fell by 38.35 points or 0.38 percent to finish at 10,186.60.

Bharti Infratel lost 5 percent after a block deal. Eicher Motors dropped 1.4 percent after its Q2 earnings missed estimates.

Globally, other Asian markets gave up early gains to end mostly lower as Chinese economic data disappointed and uncertainty lingered over U.S. tax policy.

European stocks were slightly higher in early trade, with encouraging economic data from Germany and upbeat corporate earnings supporting sentiment.

by RTT Staff Writer

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