Inflation hits a 3-year high in India!

Inflation hit the 7% mark and the BSE sensex plummeted as the global cues were disappointing again. It was expected to snap a bit. The sentiments were negative as BSE witnessed nearly 3% fall of 483.92 points and ended at 15,343. Benchmarks ended their short run-up because of rise in commodity prices.
HDFC (down 6.57%), BHEL (6.55%), Mahindra & Mahindra (5.86%), Larsen & Toubro (5.58%) and Jaiprakash Associates (5.03%) were the biggest index losers.
Ranbaxy Laboratories, up 2.73 per cent, was the only Sensex gainer. Market breadth remained negative with 1,817 declines and 815 advances on the BSE.
So many stocks took the knock and the investors' faith remains shattered as of now.
The US government is under pressure to intevene in US housing market to mitigate the repurcussions of a possible economic slowdown.
“Given the magnitude of the systemic and macro­economic risks the US faces, there is a growing case for a finely calibrated public intervention, perhaps addressing both the demand-side as well as the supply-side of the problem,” the Institute of International Finance said.
Eulogising interest rate cuts from the Federal Reserve, Bank of England and Bank of America, it however added that closer co-operation between these banks and their European and Japanese counterparts was of “critical importance”.