The sensex, which commenced the day higher at 16,390.33, fell sharply and lost 86.39 points, or 0.53 percent to 16,206.59 shortly before noon after the inflation data was released.
Selling pressure sparked following reports the inflation rises to 7.23 percent in April from 6.89 percent in March.
Similarly, the broad-based National Stock Exchange index had fell by 32.35 points, or 0.65 percent to 4,896.55 led by stocks of banking, power and realty sectors.
