Markets snap 3-day rally; Sensex drops 318 points, Nifty slips below 25,150

Mumbai Benchmark indices Sensex and Nifty ended lower on Friday, snapping a three-day rally amid anticipation of a policy rate hike by the RBI next month after retail inflation surged to 6.09% in October. The 30-share BSE Sensex dropped 318.56 points, or 0.39%, to settle at 81,592.45. During the day, it tumbled 622.26 points, or 0.75 per cent, to 81,288.75.

The 50-share NSE Nifty closed 155.05 points, or 0.61%, lower at 25,144.30. This is the first major decline for both the benchmark indices this month. Among the Sensex firms, Mahindra & Mahindra, UltraTech Cement, Bharat Electronics, NTPC, Trent and HDFC Bank were among the major laggards.

Hindustan Unilever, Asian Paints, Bharti Airtel and Reliance Industries were among the winners. Retail inflation surged to 6.09 per cent in October, breaching the Reserve Bank of India's upper tolerance limit for the first time in two years and prompting economists to anticipate a policy rate hike by the central bank next month.