Sensex slumps 207 points

MUMBAI, Apr 16 (Reuters/Business Standard): The markets lost their way in the post-noon session due to caution surrounding foreign institutional investors (FIIs) outflows and higher-than-expected inflation data released on Tuesday. Muted Q4 growth expectations from TCS, which will announce its earnings later in the evening, further dampened sentiments.
 The Sensex ended at 22,277, weaker by 207 points and the Nifty ended at 6675, down 58 points. There was also pain in the hitherto-outperforming broader markets, with the midcap index ending at 7232, down 79 points and the smallcap index shutting shop at 7418, down 83 points. All the sectoral indices were gripped by selling pressure, with the sole exception of the defensive FMCG pack and metals.
 The Sensex has been finding it difficult to scale new highs after hitting an all-time summit of 22,792 on April 10. The current session has been no different. The domestic markets had started the day on a muted note, tracking the trend in SGX Nifty.
Data showed that overseas investors sold shares worth Rs 216.3 million on Tuesday, the second straight session of outflows. And the pessimism seems to have only deepened in the later half of the day as the markets cose to ignore the strength prevalent on the Asian and European fronts.
The headline WPI inflation had surprised the street negatively on Tuesday by rising above street expectations. The inflation re-accelerated in March to 5.7 per cent Y-o-Y, the fastest pace since December. Wholesale price inflation re-accelerated in March as price growth across all the major WPI categories increased. Food price inflation ticked higher as vegetable prices rose quickly.
The consumer price index (CPI) inflation also quickened to 8.31 per cent in March 2014 as compared to 8.03 per cent in February 2014 owing to higher inflation in fruits and vegetables which stood at 17.19 per cent and 16.80 per cent respectively during the month.
 Meanwhile, Reuters says: TCS rivals Wipro and HCL Technologies will report their earnings on Thursday, followed by index heavyweight Reliance Industries on Friday.
Worries that foreign investors, who have pumped $4.8 billion into Indian shares so far this year, could be booking profits also weighed. Foreign investors are seen as the primary drivers behind the stock markets' record highs touched on April 3.
Overseas investors sold Indian cash shares worth 216.3 million rupees ($3.59 million) and equity derivatives worth 12.18 billion rupees on Tuesday - their second straight session of outflows.
Higher-than-expected retail inflation, which quickened to 8.31 per cent in March, driven by high food prices, was also a drag on sentiment.