Sensex, Nifty trades flat on higher inflation, poll caution

The key equity indices traded flat on Wednesday afternoon as higher wholesale inflation and caution during the ongoing assembly polls in five states weighed on the domestic investor sentiments.

Although, crude oil prices eased and rupee appreciated during the day but positive sentiments eroded as the day progressed, analysts said.

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India’s annual rate of inflation based on wholesale prices rose to 5.28 per cent in October from 5.13 per cent in September, the Commerce Ministry data said.

Heavy selling pressure was witnessed in export-oriented stocks like IT and healthcare as the domestic currency appreciated to Rs 72.16 to a US dollar from its previous close of 72.67.

In addition the benchmark Brent Crude registered a steep decline to $65.42 a barrel.

However, the index pivotals — finance and banking stocks — traded in green.

At 1.53 p.m., the S&P BSE Sensex traded 0.55 lower at 35,143.94 from its previous close of 35,144.49.

The benchmark index touched a high of 35,351.88 and a low of 35,042.31 while the NSE’s Nifty was trading 6.50 points higher at 10,589.