Indian Shares Open Lower On Inflation Worries

(RTTNews) - Indian shares were subdued in early trade on Tuesday as surging oil prices fueled worries over inflation and raised the likelihood of tighter monetary policy, with traders now pricing a 57 percent chance of a September rate hike by the Federal Reserve.

The downside, however, remained capped after official data showed the Indian economy expanded more than expected in the June quarter, fueled by investment and spending.

The benchmark 30-share BSE Sensex slipped 133 points, or 0.2 percent, to 76,823 while the NSE Nifty index dipped 51 points, or 0.2 percent, to 24,032.

Among the prominent decliners, HDFC Bank, TCS, Bajaj Finance, Axis Bank, Titan Company, SBI, Indigo and Bajaj FinServ were down 1-3 percent.

Happiest Minds slumped 7.5 percent after announcing a merger with ITC Infotech. Milky Mist Dairy Food soared 8 percent after Q1 profit zoomed nearly 9 times from last year.

PVR Inox added nearly 2 percent after approving its first-ever share buyback.

Tribhovandas Bhimji Zaveri skyrocketed 20 percent after GRT Jewellers agreed to acquire 74.12 percent stake in the company for Rs. 1,034 crore.