The retail inflation surging to eight-month high of 5.4 percent in June dampened the hopes of rate cut by the Reserve Bank, brokers said. The 50-issue Nifty of the NSE fell by 11.65 points, or 0.14 percent to 8,448 points in morning trade.

The 30-share barometer, which was up by 33.85 points in pre-trade, dropped by 57 points as bluechips like Tata Motors, HDFC, Reliance and ONGC declined. The gauge had gained 387.53 points in past two sessions.

Among major losers, Tata Motors fell by 1.78 per cent, HDFC by 0.76 percent while Hindalco, Reliance, ONGC, TCS, Infosys and ICICI Bank dropped up to 1 percent.

Among other Asian markets, China's Shanghai Composite Index rose 0.73 percent, while Japan's Nikkei was up by 1.50 percent in morning trade.

The US Dow Jones Industrial Average ended 1.222 percent higher in yesterday's trade after Greece reached a bailout deal with its international creditors.


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