Sensex shrugs off positive inflation data; down 55 points

The benchmark BSE Sensex fell close to 55 points in early trade today on profit-booking by investors despite positive macroeconomic data points.

A mixed trend at other Asian markets as investors turned cautious ahead of the US Fed rate decision later this week
weighed.

The 30-share barometer, which had gained 246.49 points in Monday's session, was trading down 54.91 points, or 0.21%, at 25,801.79, with metal, banking, auto and power sector stocks leading the losses.

On similar lines, the NSE Nifty shed 27.15 points, or 0.34%, at 7,845.10.

Brokers said sentiment turned somewhat weak as investors booked profits after Monday's gains even as retail inflation fell to a new low of 3.66% in August, which may prompt the Reserve Bank to cut rates at its September 29 policy meet.

Among other Asian markets, Hong Kong's Hang Seng was down 0.27% while Shanghai's Composite index fell 2.42%, but Japan's Nikkei was up 1.33% in early trade.

The US Dow Jones Industrial Average ended 0.38% lower in Monday's trade.