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BENGALURU: Indian shares gave up early gains to hit a one-week low on Wednesday as banks fell ahead of US inflation data that will likely offer cues on the US Federal Reserve’s rate hike trajectory.

The NSE Nifty 50 index ended down 0.57% at 15,966.65, while the S&P BSE Sensex dropped 0.69% to 53,514.15. The benchmarks fell nearly 0.8% earlier in the session to hit their lowest levels since July 6.

The Nifty bank index fell 0.87%, offsetting a 0.9% rise in the fast-moving consumer index.

The market is cautious that the US inflation data might show some stickiness at the higher levels, said Ajit Mishra, vice president, research, Religare Broking.

India’s annual consumer inflation remained above the 7% mark, beyond the central bank’s tolerance band for a sixth month in a row, official data showed on Tuesday, raising prospects of more rate hikes by the central bank next month.

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