Mumbai, Dec 14 (PTI) The BSE Sensex continued its downward trajectory for the third consecutive session on Tuesday as spiking inflation and global concerns over the Omicron variant sapped risk appetite.

A weakening rupee and unabated foreign fund outflows added to the gloom, traders said.

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The 30-share benchmark declined 166.33 points or 0.29 per cent to end at 58,117.09. Similarly, the broader NSE Nifty fell 43.35 points or 0.25 per cent to 17,324.90.

ITC was the top loser on the Sensex chart, shedding 2.73 per cent, followed by Bajaj Finance, Kotak Bank, Bharti Airtel, Reliance Industries and Bajaj Finserv.

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On the other hand, PowerGrid, Dr Reddy's, Nestle India, Axis Bank, ICICI Bank and IndusInd Bank were among the winners, climbing as much as 3.84 per cent.

"Due to elevated levels of inflation and weak Asian markets, the domestic indices extended losses ahead of the US Fed policy announcement," said Vinod Nair, Head of Research at Geojit Financial Services.

"Offsetting a favourable base effect and cut in levies on fuel, India's CPI inflation rose to 4.91 per cent YoY in November as higher input costs forced producers to hike prices. Moreover, India's wholesale inflation soared to a 12-year high of 14.23 per cent YoY underpinned by mineral oil, base metals, crude petroleum and natural gas," he noted.

Ajit Mishra, VP - Research, Religare Broking, said participants are maintaining a cautious stance ahead of the US Fed meeting outcome scheduled on Wednesday.

"We reiterate our view to limit leveraged positions and maintain positions on both sides," he added.

Sector-wise, BSE telecom, auto, energy and FMCG indices slipped up to 1.37 per cent, while power, utilities, oil and gas and healthcare ended with gains.

Broader BSE midcap index ended in the red, while the smallcap gauge was positive.

Asian markets reeled after China reported its first case of the Omicron coronavirus variant amid rising COVID-19 cases in multiple countries.

Bourses in Shanghai, Tokyo, Seoul and Hong Kong ended with losses. Stock exchanges in Europe were, however, trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.26 per cent to USD 74.20 per barrel.

The rupee tumbled 10 paise to close at 75.88 against the US dollar.

Foreign institutional investors remained net sellers in the capital market on Monday, offloading shares worth Rs 2,743.44 crore, according to exchange data.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)