Markets continue to trade lower, eye on inflation

Markets continued to trade weak after opening lower due to weakness in rate sensitive realty and banking stocks ahead of the April inflation data. The Nifty was down 22 points at 5521 and the Sensex slipped 100 points, at 18,427/

The April inflation reading is expected to affect the Reserve Bank of India’s decision on rate hike. Reuters poll has predicted April Whole Sale Price Index at 8.58%. The inflation bias may remain on the upside after India’s state run gasoline companies raised prices by Rs 5 per litre soon after United Progressive alliance (UPA) and its allies won elections in three out of five states on Friday.