On May 9th, there was a late sell-off in the market which erased the early gains, as traders decided to book profits due to concerns over some upcoming data points. The US is scheduled to release inflation data, which will set the tone for the Federal Open Market Committee's (FOMC) next meeting.
Some analysts are worried that if the US inflation rate, which is expected to remain unchanged at 5% from March, continues to be high, the Fed will remain stricter for a longer period. However, sustained support from foreign institutional investors (FIIs) is preventing a steep correction in the domestic market.
The Nifty 50 index closed at 18,265.95, rising by 1.55 points or 0.01%. Meanwhile, the BSE flagship Sensex ended the day nearly flat, down 2.92 points at 61,761.33.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, "Global cues were mixed as investors keenly await US inflation data as this will set the tone for FOMC's next meeting. Apart from global cues and Q4 earnings, the domestic market will also watch for the Karnataka assembly election that will start on Wednesday. The outcome of the election will be announced on 13th May. While the Nifty is finding some profit booking at higher levels, the overall market structure remains positive."