India’s broader NSE index fell for a second consecutive session yesterday, marking its biggest fall since March 3, as interest-rate sensitive shares such as Housing Development Finance Corp fell after wholesale inflation accelerated more than expected.

The wholesale price index (WPI) in March rose a much faster-than-expected 5.70% from a year earlier, marking a three-month high and coming well above the 5.30% increase forecast by economists.

Concerns that a rally that sent indexes to record highs last week may have been overdone also weighed, especially as Asian shares were hit by data showing China’s money supply growing at the weakest pace in more than a decade.

Foreign institutional investors, who have pumped in $4.8bn so far in 2014, became net sellers worth 3.63bn rupees ($60.3mn) on Friday for the first time since March 10. Markets were closed on Monday for a holiday. “With the Nifty seeing a one-sided rally for the last several weeks, investors may continue to book partial profits too. In the coming sessions, fourth quarter results, election outcome and global cues will have a major impact on the market trend,” said by Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

“However, despite selling pressure, Nifty is seen holding above the 6700 level well, which shows optimism in the near term. The index can be seen trading in a compact range of 6650-6820 for the last few trading sessions,” he added.

The benchmark BSE index closed 0.64% lower at 22,484.93, while the broader NSE index also ended down 0.64% at 6,733.10.

Interest rate-sensitive shares such as those of banks and real estate companies fell after the surprisingly strong wholesale price inflation.

These sectors had surged on anticipation the Reserve Bank of India would hold off on further interest rate hikes after tightening monetary policy by 75 basis points since September.

Meanwhile the rupee weakened for the fourth session in five yesterday as shares retreated on worries that a recent record-setting rally may have gone too far, although bunched up dollar inflows continued to provide some support.

Some of those concerns eased somewhat after data released after markets closed yesterday showed headline consumer price inflation accelerating more than expected, but analysts estimated core CPI remaining steady at around 7.9% in March.

Foreign institutional investors, who have pumped in $4.8bn into equities so far this year, became net sellers worth 3.63bn rupees ($60.3mn) on Friday for the first time since March 10.

Whether the rupee can sustain gains will likely depend a large degree on foreign flows, although for now analysts expect the currency to trade in a range. “The broad bullishness on the rupee stays intact, so all upticks find sellers,” said Hari Chandramgethen, head of foreign exchange trading at South Indian Bank.

The partially convertible rupee closed at 60.23/24 per dollar yesterday, compared with its Friday’s close of 60.1750/1850.

The retreat in shares kept the rupee under pressure, with data after the close of markets on Friday showing industrial output unexpectedly shrank 1.9% year-on-year in February.

There was good demand for the greenback seen form oil importers, the largest buyers of dollars in the domestic currency market.