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Trading segments including Indian equity, forex, money and commodity markets are shut today on account of Mahashtra Assembly Elections.
The Sensex fell 0.13%, or 35 points, to end at 26,349.33 on Tuesday and the broader Nifty lost 0.26%, or 20 points, to end at 7,864.00.
The partially convertible rupee closed at 61.41/42 per dollar compared with 61.0950/1050 on Monday, its weakest close since Oct. 1.
Further, Foreign investors were net sellers in equities to the tune of Rs 695 crore on Tuesday.
Meanwhile, WPI inflation eased to 2.38% for the month of September compared to 3.74% in August, lowest in 33 months. With better than expected figures on retail inflation too, analysts expect RBI to be able to meet its 2016 target of 6% of retail inflation by mid-2015 itself and adopt a dovish stance on policy rates soon.
Global Markets:
Asian stocks were cautiously up on Wednesday as benign inflation data in China and more gloom in the euro zone economy lent credence to fears of a faltering global economic recovery. The Nikkei, Straits Times and Hand Seng gained between 0.1-0.3%. Meanwhile, Shanghai Composite lost 0.6%.
China's annual consumer inflation eased to 1.6% in September against expectations of 1.7%, adding to concerns the economy continues to lose momentum despite a raft of stimulus measures.
Adding to the gloom, the German government cut its growth forecasts, euro zone industrial production fell, British inflation slowed sharply in September and Fitch warned it may cut France's credit rating.
However, Wall Street put up a mixed performance overnight, reflecting the cautious mood in markets. The S&P 500 and Nasdaq booked modest gains to break a three-day string of sharp declines, but the Dow finished down for a fourth day.
The Dow Jones industrial average fell 0.04%, to 16,315, whereas the Nasdaq Composite added 0.32% to 4,227.
