Benchmark indices ended lower by over 1% weighed down by rate-sensitive sectors after acceleration in April CPI triggered speculation that the Reserve Bank of India would keep key policy rates on hold at its policy review next month.
The RBI next undertakes monetary policy review on June 7, 2016. Weak global cues also weighed market sentiment.
April CPI was a higher than expected 5.39%, on the back of a large jump in food prices, snapping a three-month downtrend whereas March India's industrial output rose by 0.1%, largely losing the momentum generated in February when it had risen by 2%, after a three-month fall.