<p>A surge in inflation could result in a harsher hike of key interest rates by the Reserve Bank of India, which has already said it will continue to combat high inflation by maintaining a hawkish monetary policy.<br /><br />The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,492.68 points, closed at 18,345.03 points -- down 186.25 points or 1.01 percent from its previous close at 18,531.28 points.<br /><br />India's annual rate of inflation slipped a tad to 8.66 percent in April, compared to 9.04 percent recorded in the previous month, according to official data released Monday.<br /><br />The fall in inflation was because of a high base recorded in the like month of last year at 10.88 percent. <br /><br />The 50-scrip S&P CNX Nifty of the National Stock Exchange ended at 5,499 points, down 0.83 percent.<br /><br />Broader markets ended weak, with the BSE midcap index closing 0.77 percent down and the BSE smallcap index 0.74 percent down.<br /><br />Oil marketing companies had increased petrol prices by Rs.5 per litre Saturday. <br /><br />Interest rate sensitive stocks like auto, banking and realty stocks were among top losers at this time.<br /><br />The market breadth was tilted towards the negative with 1,052 stocks advancing, 1,713 on the decline and 134 unchanged.<br /><br />Among the gainers on the Sensex were: Hero Honda, up 3.87 percent at Rs.1,864.95; BHEL, up 0.93 percent at Rs.2,050.65 and Bharti Airtel, up 0.83 percent at Rs.370.25.<br /><br />Among the losers were: Jaiprakash Associates, up 3.2 percent at Rs.84.75; Bajaj Auto, up 2.72 percent at Rs.1,300.85; M&M, down 2.71 percent at Rs.673.15 and Tata Steel, down 2.64 percent at Rs.578.30. <br /><br />Concerns of the Greece sovereign debt crisis worsening spooked traders at Asian markets. <br /><br />The Nikkei of the Japanese stock exchange closed 0.94 percent lower at 9,558.3 points, while Hong Kong's Hang Seng ended 1.36 percent down at 22,960.63 points. <br /><br />The Shanghai Composite index of the Chinese markets too shut shop 0.77 percent down at 2,849.07 points. <br /><br />European markets fell as investors feared the sovereign debt crisis faced by countries like Greece would not be resolved soon after the arrest of International Monetary Fund chief Dominique Strauss-Kahn in New York over sexual assault charges. <br /><br />Britain's FTSE was down 0.88 percent at 5,873.67 points.<br /><br />Around midday, the French CAC 40 was trading 1.45 percent lower at 3,960.7 points, while the German DAX was ruling 1.33 percent down at 7,304.99 points.<br /><br /></p>
<p>A surge in inflation could result in a harsher hike of key interest rates by the Reserve Bank of India, which has already said it will continue to combat high inflation by maintaining a hawkish monetary policy.<br /><br />The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,492.68 points, closed at 18,345.03 points -- down 186.25 points or 1.01 percent from its previous close at 18,531.28 points.<br /><br />India's annual rate of inflation slipped a tad to 8.66 percent in April, compared to 9.04 percent recorded in the previous month, according to official data released Monday.<br /><br />The fall in inflation was because of a high base recorded in the like month of last year at 10.88 percent. <br /><br />The 50-scrip S&P CNX Nifty of the National Stock Exchange ended at 5,499 points, down 0.83 percent.<br /><br />Broader markets ended weak, with the BSE midcap index closing 0.77 percent down and the BSE smallcap index 0.74 percent down.<br /><br />Oil marketing companies had increased petrol prices by Rs.5 per litre Saturday. <br /><br />Interest rate sensitive stocks like auto, banking and realty stocks were among top losers at this time.<br /><br />The market breadth was tilted towards the negative with 1,052 stocks advancing, 1,713 on the decline and 134 unchanged.<br /><br />Among the gainers on the Sensex were: Hero Honda, up 3.87 percent at Rs.1,864.95; BHEL, up 0.93 percent at Rs.2,050.65 and Bharti Airtel, up 0.83 percent at Rs.370.25.<br /><br />Among the losers were: Jaiprakash Associates, up 3.2 percent at Rs.84.75; Bajaj Auto, up 2.72 percent at Rs.1,300.85; M&M, down 2.71 percent at Rs.673.15 and Tata Steel, down 2.64 percent at Rs.578.30. <br /><br />Concerns of the Greece sovereign debt crisis worsening spooked traders at Asian markets. <br /><br />The Nikkei of the Japanese stock exchange closed 0.94 percent lower at 9,558.3 points, while Hong Kong's Hang Seng ended 1.36 percent down at 22,960.63 points. <br /><br />The Shanghai Composite index of the Chinese markets too shut shop 0.77 percent down at 2,849.07 points. <br /><br />European markets fell as investors feared the sovereign debt crisis faced by countries like Greece would not be resolved soon after the arrest of International Monetary Fund chief Dominique Strauss-Kahn in New York over sexual assault charges. <br /><br />Britain's FTSE was down 0.88 percent at 5,873.67 points.<br /><br />Around midday, the French CAC 40 was trading 1.45 percent lower at 3,960.7 points, while the German DAX was ruling 1.33 percent down at 7,304.99 points.<br /><br /></p>