NSE Nifty declined 0.78%, or 177.80 points, to 22,576, while the BSE Sensex was at 74,469, down by 0.76 per cent or 568 points.

Of the 3,845 stocks which were actively traded, 1,477 advanced, 2,238 declined and 130 stocks remained unchanged. 174 stocks hit 52-week high and 8 stocks hit 52-week low at 1 p.m.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The hotter-than-expected US inflation has spiked the US bond yields. This is negative for FPI inflows but is unlikely to impact the Indian market which is resilient, and the rally is driven mainly by domestic liquidity. Dips are likely to get bought imparting strength to the market. Therefore, investors may use the dips to buy high quality large-caps where the margin of safety is high.”

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“From the global equity market perspective, sticky US inflation is a negative since it has reduced hopes of three rate cuts by the US. But it is important to note that there is a real positive factor in the sticky inflation, and that is the exceptionally strong US economy which is showing no signs of a slowdown, leave alone recession. This resilience of the US economy will support earnings growth and, therefore, the US stock market. This favourable backdrop will be positive for other markets including India,” he added.

Major gainers on the NSE at 1 p.m. were Eicher Motors (1.29%), Tata Motors (1.25%), Divi’s Labs (1.21%), Bajaj Auto (1.06%) and NTPC (1.01%). Major losers were Sun Pharma (-2.74%), Titan (-1.90%), Apollo Hospitals (-1.68%), Shriram Finance (-1.51%) and Maruti Suzuki India (-1.47%)

BSE SmallCap was down by 0.18 per cent and MidCap was up by 0.038 per cent.