Sensex, Nifty End Modestly Lower On Hawkish Fed Comments

(RTTNews) - Indian shares ended Monday's session slightly lower and the rupee fell sharply after a top Federal Reserve official pushed back on dovish rate bets saying that markets got "way out in front" over just one inflation print.

The U.S. dollar and bond yields rose after Fed Governor Christopher Waller said the Federal Reserve may consider slowing the pace of rate increases at its next meeting but the "end point" of rate increases is likely still "a ways off."

Signs of rising COVID-19 cases in China and a surprising U.S. election result also weighed, while the downside was capped after China announced a sweeping rescue package to salvage its real estate market.

Closer home, India's wholesale price inflation eased further in October to reach its lowest level in just over one-and-a-half years, provisional data from the Ministry of Commerce and Industry revealed.

The wholesale price index climbed 8.39 percent year-over-year in October, slower than the 10.70 rise in September. Economists had expected inflation to ease to 8.70 percent.

CPI data is expected to come later in the day. Over the weekend, RBI Governor Shaktikanta Das said consumer price inflation is likely to fall below 7 percent in October.

The benchmark S&P/BSE Sensex ended the session down 170.89 points, or 0.28 percent, at 61,624.15, while the broader NSE Nifty index dropped 20.55 points, or 0.11 percent, to close at 18,329.15.

Dr Reddy's Laboratories led losses to close 3.8 percent lower while SBI, Hindustan Unilever, ITC and Coal India gave up 1-3 percent.

On the positive side, Hindalco shares surged 5.8 percent as London copper prices hovered near a five-month high on China demand hopes.

Power Grid Corp, Grasim, Tata Motors and Apollo Hospitals Enterprise climbed 1-3 percent.