Equity benchmark indices Sensex and Nifty slumped in early trade on Friday amid profit-taking after a three-day rally and anticipation of a policy rate hike by the Reserve Bank of India next month, after retail inflation surged to 6.09 per cent in October, news agency PTI reported from Mumbai.

Source: PTI via The Sen Times

The 30-share BSE Sensex tumbled 460 points to 81,441.17 in early trade, while the 50-share NSE Nifty fell 179.05 points to 25,119.50, PTI said. The indices had opened lower — the Sensex at 81,833.78, down 77.23 points, and the Nifty at 25,209.85, down 89.50 points — and extended losses in early deals, IANS reported, putting the Sensex about 450 points down at 81,457.74 and the Nifty 182 points lower at 25,117.

Among the 30 Sensex firms, Mahindra & Mahindra, HDFC Bank, InterGlobe Aviation, Trent, Bharat Electronics and Bajaj Finserv were among the major laggards, according to PTI.

The broader market also opened in the red, with the Nifty 100 down 0.34 per cent, the Nifty Midcap 100 down 0.31 per cent and the Nifty Smallcap 100 down 0.17 per cent in the opening session, ANI reported. India VIX, the volatility gauge, eased 1.74 per cent to 16.33 by 10:02 am despite the weak opening, HDFC Sky reported.

81,441.17Sensex in early trade (PTI)
25,119.50Nifty in early trade (PTI)
6.09%October retail inflation
+9.7%Nifty's November gain before Friday (IANS)

The selling followed Thursday's inflation data, which showed retail inflation crossing the RBI's 6 per cent upper tolerance limit for the first time in two years, with food inflation at 8.94 per cent. The RBI Monetary Policy Committee meets next on December 2-4. Read: Inflation breaches RBI band at 6.09% in October

IANS noted the weakness came after the Nifty's 9.7 per cent rally so far in November, as investors weighed whether the sharp run could continue amid rising inflation in India and the United States and higher crude oil prices.