Sensex, Nifty end half a percent lower ahead of inflation data, Fed policy

Nifty PSU bank index dropped nearly 2% while the Nifty Bank index settled 0.9% lower

Benchmark indices settled the day lower after trading under pressure throughout the day as investors booked profit ahead of inflation data due today and the US Federal Reserve policy meeting later this week. Negative global sentiment due to tech sell off in US markets also dragged the markets.
 
Inflation in India is expected to have cooled to a new record low of 2.60% in May, according to a Reuters poll, which could add pressure on the Reserve Bank of India to cut interest rates later in the year.
 
The S&P BSE Sensex was trading at 31,096, down 166