Markets skid for second day as inflation, valuation concerns' weigh

Analysts said the inflationary pressure seen by companies such as HUL and Nestle India have made the Street temper down its earnings growth expectations

The benchmark indices fell for the second day as investors assessed the impact of rising inflation on corporate earnings. Valuation concerns amid spike in bond yields and commodity prices also led to some profit taking following the sharp up move in recent weeks.

The Sensex fell 456 points, or 0.74 per cent, to end at 61,260, the Nifty 50 index tumbled 152 points, or 0.8 per cent to close at 18,266. The Nifty Midcap 100 declined 2.2 per cent for a second day in a row, with 77 components declining. The Nifty Smallcap100 dropped 2.4 per cent, adding to 1.7