Sensex, Nifty sluggish; Reliance up 1%, Bajaj Auto down 2%

Moneycontrol Bureau12:55 pm Economy: Inflation based on the Consumer Price Index (CPI) is likely to remain in the 5.6-5.8 percent range over the next two months, Deutsche Bank said in a research note, predicting that RBI would cut the policy rate "one more time".

According to the global financial services firm, inflation and growth worries for the Indian economy still persist and implementation of the Seventh Pay Commission recommendations is likely to exert pressure on fiscal finances of the government - both the Centre and states.

"We expect CPI inflation to remain in the 5.6-5.8 percent range over the course of the next two months, in line with RBI's near-term target, but higher than what we had anticipated earlier," Deutsche Bank said in a research note.

12:45 pm Pharma: Glenmark Pharmaceuticals announced receipt of tentative approval from USFDA for its generic version of azelaic acid topical gel used for treating skin inflammation.

Glenmark will market this product upon receiving final approval, it said, adding that the patent for Finacea topical gel, 15 percent, is scheduled to expire on November 18, 2018.

The tentative nod granted to Glenmark Pharmaceuticals Inc, USA, by the US Food and Drug Administration (USFDA) is for azelaic acid gel, 15 percent, the generic version of Finacea topical gel, 15 percent of Bayer Healthcare, the company said in a BSE filing.

12:30 pm Market outlook: Brokerage house Credit Suisse recommends selling into rallies in shares of public sector banks and metal companies. “We believe the sentiment-driven rebound in PSU Banks and metals is an opportunity to cut positions,” the brokerage says in a note to clients. At the same time, operationally better companies like Adani Ports, Maruti, Tata Motors and Tech Mahindra are now looking attractive, Credit Suisse says.

The market remains sluggish as the Sensex is down 58.52 points or 0.2 percent at 23133.45. The Nifty is down 21.25 points or 0.3 percent at 7027. About 568 shares have advanced, 1671 shares declined, and 109 shares are unchanged.

Adani Ports, Reliance, Dr Reddy's Labs, Tata Motors and Sun Pharma are top gainers while GAIL, Bajaj Auto, Coal India, ICICI Bank and Lupin are losers in the Sensex.

Gold futures were up 0.11 percent to Rs 28,930 per ten grams as traders raised bets amid positive cues from the global markets.

Analysts attributed the rise in gold prices to a firming trend overseas as investors await the release of minutes from the last Federal Open Market Committee meeting for further signs of the central bank's views.