Snapping fourth straight session gains, Indian stocks opened on September 14 with a sharp cut on account of consistent red-hot consumer inflation in the US.
Consumer inflation in the US though declined marginally in August to 8.3 per cent from 8.5 per cent in July but is way above the 2 per cent goal.
In the backdrop of the current over four-decade high inflation in the country, the US Federal Coming to the domestic indices, at 9.24 am, Sensex traded at 59,977.47 points, down 593.61 points or 0.98 per cent, whereas Nifty traded at 17,904.35 points, down 165.70 points or 0.92 per cent. Among the Nifty 50 companies, 38 declined and the rest 12 advanced this morning, National Stock Exchange data showed.
The US Federal Reserve in its June meeting too raised the interest rate by 75 basis points, which was then the steepest hike since 1994. For fresh cues, investors will await India's wholesale inflation data for August scheduled for release later today. India's wholesale inflation declined substantially during the month of July to 13.93 per cent from 15.18 in June, but continues to remain in double digits.
The Wholesale Price Index (WPI) based inflation has been in the double-digit for 16 months in a row now.