Higher WPI and partial lockdowns in certain states have spooked a section of investors who fear a slide in the market. However, analysts say the medium-term outlook is positive despite short-term hiccups.
The 30-share pack Sensex declined 397 points or 0.78 per cent to close at 50,395.08. The index gyrated in a range of 1035.71 points during the day. Its broader peer NSE Nifty dived 101.45 points or 0.67 per cent to settle at 14,929.50.
“Both retail and wholesale inflations inclined higher than estimated while industrial production fell in January 2021. However, optimism in European and other Asian markets helped to recover from the sharp initial losses. We can expect this volatility to stabilise based on the global outlook after a confirmation from Fed to maintain an accommodative policy,” said Vinod Nair, Head of Research at Geojit Financial Services.
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